(Bloomberg) — Oil steadied after a gain, with pockets of strength in physical markets supporting wider sentiment.
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West Texas Intermediate traded below $78 a barrel after rising by 1.4% on Monday, with Brent closing above $82. There have been signs of recent buying activity from refineries in the world’s two largest economies, the US and China, which has pushed prices of US grades higher. Widely watched timespreads have also strengthened, signaling near-term tightness in the market.
Oil is grinding its way toward a second monthly advance, although it’s yet to break decisively out of its recent , narrow range. While tensions in the Middle East and OPEC+ supply curbs have supported crude prices, higher production from outside the group, including the US, has capped the gains.
The market’s opposing drivers have prompted both Goldman Sachs Group Inc. and Bank of America Corp. to predict that rangebound trading will persist in the near term. Goldman Sachs sees a $20 band for crude centered on $70 a barrel, with muted volatility, while its rival expects oil to hold between $60 and $80.
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