Oil Winning Streak Is Longest Since 2010 as Outlook Brightens
By Alex Nussbaum
January 11, 2019, 9:13 AM GMT+9:30Updated on January 11, 2019, 7:03 AM GMT+9:30
WTI closes higher for 9th straight day as Fed vows patience
Crude has rallied back into bull territory on Saudi-led cuts
Futures rose 0.4 percent in New York, continuing a recovery from a drop of about 40 percent at the end of 2018. Prices have rebounded amid signals that production curbsby the OPEC+ coalition would balance the market. Fed Chairman Jerome Powell’s commentsthat the central bank will be patient before adjusting rates again also reassured investors, said Daniel Ghali, a TD Securities commodities strategist.
“We’ve seen quite a few positive events since the market was falling off a cliff," Ghali said by telephone from Toronto. “With OPEC seeming committed, the outlook for crude is a lot less gloomy than some people had expected."
Oil is still down about 30 percent since reaching a four-year high in October. Investors should get used to the swings, according to Ghali. Central banks around the globe are withdrawing stimulus, adding volatility across markets, he said.
West Texas Intermediate for February delivery rose 23 cents to $52.59 a barrel on the New York Mercantile Exchange. WTI has risen for nine straight days, and has gained 24 percent on the since hitting a low on Christmas Eve.
Brent for March settlement rose 24 cents to $61.68 a barrel on the ICE Futures Europe Exchange in London, and traded at an $8.77 premium to WTI for the same month. The global benchmark crude has also jumped more than 20 percent since Dec. 24, meeting the common definition of a bull market. https://www.bloomberg.com/news/arti...-breakout-on-cuts-trade-talks?srnd=markets-vp
OSH Price at posting:
$7.61 Sentiment: Buy Disclosure: Held
