SINGAPORE (Reuters) – Oil prices recouped more than 1% on Friday but were on track for their biggest weekly loss this year after swelling inventories and jitters over an economic slowdown led to big falls earlier in the week.
Brent crude futures were at $68.65 per barrel at 0534 GMT, up 89 cents, or 1.3%, from their last close, with prices underpinned by OPEC supply cuts and Middle East tensions.
US West Texas Intermediate (WTI) crude futures were up 74 cents, or 1.3%, at $58.65 per barrel. “Multiple supply risks remain, as tension continues between Iran and the US, which could turn disruptive,” ANZ bank said on Friday.
The forward price curve for Brent crude futures remains in backwardation, in which prices for prompt delivery are higher than those for later dispatch, implying tight market conditions and making it profitable to produce and sell oil immediately rather than store it for later sale.