Oil premium series in its 5th week

Oil’s premium streak in its fifth week Oil is heading for its fifth week of gains as the market tightens. Oil is on course for its longest weekly gain in more than a year on signs of an improving macroeconomic outlook and a tighter market. U.S. crude fell below $80 a barrel on Friday but rallied more than 3% for its fifth straight gain this week. U.S. economic growth has beaten expectations and there is speculation that the Fed’s tightening cycle is near or nearing its end. Meanwhile, Chinese authorities have pledged more stimulus to support growth in its largest crude importer. Crude inventories at the U.S.’s most important storage hub in Cushing, Oklahoma, have fallen by 7.5 million barrels in the past four weeks, pushing the stockpile to its lowest level since May. The rally in U.S. crude indexes means prices have all but erased the year’s losses after OPEC+ mainstays Saudi Arabia and Russia both cut exports. That has led banks such as Standard Chartered and UBS Group AG to forecast tightening global balances and higher prices for the rest of the year. Recent economic data, including U.S. GDP print, suggests “economic resilience, providing further validation for soft-landing hopes and suggesting a much brighter demand outlook for oil,” said Yeap Jun Rong, market strategist at IG Asia Pte. He also said there were “signs of improving supply dynamics” that helped ease the downtrend. U.S. supermajor Exxon Mobil is set to report quarterly earnings on Friday, giving investors insight into the outlook.