Oil prices are on track to rise for the fifth consecutive week as further supply cuts and soft landing prospects lead to greater appetite for risk assets. The post Oil on Track for 5th Week of Gains as US Soft Landing Seems Possible appeared first on Tokenist.
Oil prices have been on a tear recently, supported by deepening supply cuts announced by the world’s largest oil producers earlier this month. As a result, benchmark crude and oil prices are in the green again, heading for their fifth straight week of gains.
Oil and Benchmark Crudes On Track for 3.6% Weekly Surge
Oil prices were headed to secure their fifth consecutive week of gains on Friday as strong demand and supply cuts prop up the market. Earlier this month, the OPEC+ alliance announced notable supply cuts, putting oil and benchmark crudes on track for a 3.6% weekly rise.
At the time of writing, Brent crude and the US West Texas Intermediate (WTI) were slightly down, at $83.6 and $79.8, respectively.
OPEC+, an organization that enables the cooperation of the world’s biggest oil producers, has been trimming oil output since November in response to waning prices. Earlier this month, OPEC+ members Saudi Arabia and Russia announced further supply cuts to bolster prices.
US Soft Landing Increasingly Likely
The latest weekly surge in oil prices comes amid growing risk appetite in broader financial markets, driven by rising expectations that leading global central banks are coming to an end of their tightening cycles. As a result, the outlook for global economic growth and energy demand has improved considerably.
Do you think the Fed did a good job when it comes to grappling with inflation and recession risks? Let us know in the comments below.