Oil’s rally continued to cool with investors in search of a new catalyst to support more buying.
While some physical crude cargoes are commanding hefty premiums and prompt time-spreads are at the widest in a year — signaling supply scarcity — macro headwinds are capping gains. The dollar has surged to an eight-month high, diminishing the appeal of commodities priced in the currency, and rate-hike expectations are fueling risk-off sentiment across markets.
Still, oil has added about 25% since June and is heading for the biggest quarterly gain since March 2022 on supply curbs by OPEC+ leaders Saudi Arabia and Russia. The rally led hedge funds to boost their bullish bets on WTI to the highest since February 2022 and has rekindled talk of the $100-a-barrel crude.
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