Oil steadied in Asia after rising more than 2% Tuesday on Saudi Arabian and Russian output cuts, with traders waiting for commentary from Saudi Energy Minister Prince Abdulaziz bin Salman.
Global benchmark Brent was little changed above $76 a barrel after rising in a low-volume session due to a US holiday. The two OPEC+ linchpins announced their latest batch of curbs on Monday, with a supply-cut extension by Riyadh and a fresh pledge to reduce production from Moscow.
The Saudi prince is due to address the 8th OPEC International Seminar later Wednesday in Vienna. When announcing the kingdom’s unilateral cut last month, the minister pledged to “do whatever is necessary” to stabilize the market.
Crude has slumped this year as China’s recovery lost momentum and central banks in the US and Europe raised rates to quell inflation, jeopardizing energy demand. The drop in prices prompted a series of interventions by the Organization of Petroleum Exporting Countries and its allies to restrict flows.
Oil prices have “obviously been impacted by the monetary policy from central banks, but certainly China as well,” ANZ Group Holdings Ltd. analyst Daniel Hynes told Bloomberg Television. “That lack of a strong rebound that many were expecting post the lockdown measures being eased has really disappointed.”
Widely watched time spreads are slowly strengthening. Brent’s prompt spread — the gap between the two nearest contracts — is back in a bullish, backwardated structure after falling into the opposite bearish pattern for most of the previous two weeks.
To get Bloomberg’s Energy Daily newsletter direct into your inbox, click here.
--With assistance from Haidi Lun and Rishaad Salamat.
