2022-01-31 12:45:00
OIL PRICE: NEAR $91
PLATTS - 31 Jan 2022 - Crude oil futures started the week higher in mid-morning trade in Asia Jan. 31, with ICE Brent pushing further above the $90/b mark, as investors remained bullish on the outlook for crude amid a continued supply deficit and holiday-thinned trade this week.
At 10:12 am Singapore time (0212 GMT), the ICE March Brent futures contract was up $1.30/b (1.44%) from the previous close at $91.33/b, while the NYMEX March light sweet crude contract rose $1.21/b (1.39%) at $88.03/b.
"Heading into the holiday-shortened week for many markets in the region, lesser trading volume may be observed with much of the action revolving around the US and Europe markets," IG market strategist Yeap Jun Rong said.
Markets in China were closed for the week, while the Singapore and Hong Kong markets were closed for the next two and three days, respectively.
Bullish sentiment pushed the front month ICE Brent crude contract to close above the $90/b mark at the close of the previous week ended Jan. 28. Both crude oil benchmarks have gained for the last six consecutive weeks, having added around 22% in value over this period.
Investors have raised their long positions in ICE Brent and NYMEX crude in recent weeks, reflecting growing confidence in a continued recovery in global oil demand and a lack of supply from producers.
Speculative net long positions in ICE Brent crude rose for five of the last six weeks up to the week ended Jan. 18 from near one-year lows, most recent data from ICE showed.
Speculative net long positions in NYMEX crude, meanwhile, have risen for four of the last six weeks up to the week ended Jan. 25, data from the US Commodity Futures Trading Commission showed.
Consensus was growing among analysts that ICE Brent would reach $100/b soon in the absence of a concerted effort from governments to ease the shortage of oil.
"Brent closed above $90/b on Friday, setting a fresh shale-era high. Intraday trading saw Brent rose to as high as $91.70/b. We see an increasing probability of oil hitting $100/b within H1 2022," OCBC Treasury Research analysts said in a note Jan. 31.
A stronger dollar may also derail crude's rise, with some predicting the US Federal Reserve to aggressively raise interest rates this year.
OPEC+ producers will meet on Feb. 2 to decide on production levels for March. Analysts expect the group to stand pat on their gradual easing of production cuts, though members have struggled to raise output to their required quota levels.
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Earlier:
2022, January, 28, 11:55:00
OIL PRICE: NEAR $90
Brent climbed 57 cents, or 0.6%, to $89.91 a barrel , WTI rose 54 cents, or 0.6%, to $87.15 a barrel.
2022, January, 27, 12:50:00
OIL PRICE: ABOVE $89
Brent were down 31 cents, or 0.6%, to $89.44 a barrel , WTI were down 58 cents, or 0.6%, to $86.77 a barrel.
2022, January, 26, 12:45:00
OIL PRICE: NEAR $89
Brent rose 61 cents, or 0.7%, to $88.81, WTI was up 25 cents, or 0.3%, to $85.85.
2022, January, 25, 13:10:00
OIL PRICE: NOT ABOVE $88
Brent rose 61 cents, or 0.7%, to $86.88 a barrel, WTI climbed 44 cents, or 0.5%, to $83.75 a barrel.
2022, January, 24, 12:25:00
OIL PRICE: ABOVE $88
Brent rose 58 cents, or 0.7%, to $88.47 a barrel, WTI gained 57 cents, or 0.7%, to $85.71 a barrel.
2022, January, 21, 11:20:00
OIL PRICE: NEAR $87 AGAIN
Brent were down $1.00, or 1.1%, to $87.38 a barrel, WTI slid $1.16, or 1.4%, to $84.39 a barrel.
2022, January, 19, 11:00:00
OIL PRICE: NEAR $88
Brent rose 87 cents, or 1%, to $88.38 a barrel, WTI climbed $1.03, or 1.2%, to $86.46 a barrel.
