(Bloomberg) — Oil rose in Asia on optimism that fuel demand will continue to climb and tighten the market, despite a Covid-19 resurgence in many regions.
Futures in New York climbed toward $75 a barrel after advancing more than 2% on Friday. The robust demand rebound in major economies including the U.S. and China has underpinned rising fuel consumption, although the spread of the delta variant of the virus is a reminder that the global recovery will be bumpy.
Oil’s momentum, however, stumbled last week after an OPEC+ meeting was abandoned following a breakdown in talks between key members. Crude capped its first weekly loss since May — despite an end-of-week rally — with the stalemate raising concerns that the group’s unity may fracture and lead to a price war. The alliance had been expected to boost production.
See also: Oil Bears Will Play Until OPEC Finds a Compromise: Julian Lee
The prompt timespread for was 83 cents a barrel in backwardation — where near-dated contracts are more expensive than later-dated ones. That compares with 81 cents on Friday.
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