Oil heads for second monthly gain

Oil headed for a second monthly gain on expectations that OPEC+ will opt to extend supply cuts and key market indicators suggest near-term conditions are gradually tightening. Global benchmark Brent was little changed below $84 a barrel, up more than 2% in February after a bigger gain the previous month. U.S. crude was above $78. Crude’s timeframes have widened backward, a trend in which short-term prices outshine longer-term prices. Crude’s back-to-back monthly gains have pushed prices to the upper end of a year-long band that has been tight since the start of the year. The climb was supported by supply cuts from OPEC and its allies, with the group widely expected to agree to extend the cuts into the second quarter. Tensions in the Middle East, including disruptions to Red Sea shipping, also helped prices. The market is "feeling relatively tight," according to Trafigura Group's chief economist Saad Rahim, citing factors including "signs of life" in the global manufacturing and petrochemical sectors. "You hear the phrase 'risk of upside' much more than you have in the last few years," he said.