London, Aug. 16, 2024 – Oil was steady at the end of a turbulent week as the market weighed strong US economic data and a possible attack by Iran or its proxies on Israel against a lackluster Chinese demand outlook.
Brent crude traded near $81 a barrel and was up around 2% for the week, with West Texas Intermediate below $78.
Robust retail sales and jobs data from the US, the world’s biggest oil consumer, helped offset concerns about slowing fixed-asset investment and industrial activity in top importer China.
Global benchmark Brent is on track for a second weekly gain, rebounding from a seven-month low near the start of last week.
The market remains on tenterhooks for signs of any significant developments in the Middle East, as Israel began talks with international mediators about a proposed pause to the more than 10-month-old war in the Gaza Strip.
Time spreads are showing underlying strength in markets.
The gap between the two nearest contracts for Brent has widened in a bullish, backwardated structure – when the prompt contract trades at a premium to the following one.
The spread was 88 cents a barrel in backwardation, compared with 57 cents at the start of the month. (Bloomberg)
