(Bloomberg) — Oil held a seven-day run of gains as traders digested contrasting outlooks from OPEC and the IEA, as well as a mixed US stockpiles report.
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West Texas Intermediate traded below $78 a barrel after surging almost 8% in the longest winning run since September, while Brent was near $83. Although OPEC’s top official said global oil demand is set to grow strongly, the Paris-based International Energy Agency flagged comfortable markets this year.
The industry-funded American Petroleum Institute, meanwhile, reported that US crude inventories rose by 8.5 million barrels last week, including a gain at the closely tracked Cushing, Oklahoma, hub, according to people familiar with the data. Still, the report also showed lower gasoline and distillate holdings.
Oil’s winning streak raises the possibility that it may break out of the $10 trading range that it’s been confined to this year. Production cuts by members of the Organization of the Petroleum Exporting Countries and their allies, plus tensions in the Middle East, have supported prices. Still, higher ex-OPEC+ supply and concerns about demand growth in China have restrained gains.
Crude’s climb on Tuesday came despite US data showing consumer prices rose by the most in eight months, which boosted the dollar and dealt a blow to expectations that the Federal Reserve will soon reduce interest rates.
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