Oil’s Longest Rally in Two Years Fizzles With Dollar Climbing

1 / 2

Oil’s Longest Rally in Two Years Fizzles With Dollar Climbing

Saket Sundria and Alex Longley

(Bloomberg) -- Oil slipped below $58 a barrel in New York as a recent rally fizzled on strength in the dollar.

Futures fell for a second session, after their longest rally in two years. The enduring pandemic continues to crimp fuel consumption from China to the U.S., with the International Energy Agency cutting its demand forecast for 2021 and describing the market as fragile. The U.S. government earlier this week also predicted the nation’s petroleum demand will likely need much more time to recover.

Despite the bearish sentiment, oil is still set to eke out a weekly gain and some are optimistic on the long-term outlook, including the IEA. Bank of America Corp. became the latest institution to join a chorus of bullish voices, saying demand could rise at its fastest pace since the 1970s over the next three years. The structure in the Brent market surged again on Friday, indicating tighter supplies despite the drop in headline prices.

Oil’s rapid rebound from the depths of the Covid-19 pandemic has accelerated this year after Saudi Arabia pledged to deepen output cuts. Prompt timespreads have widened in a bullish backwardation structure, helping to unwind bloated stockpiles held in onshore tanks and on ships.

“Based on fundamental analysis, the case for further price gains is hard to make, although we are seeing optimism in financial markets in general,” said Hans van Cleef, senior energy economist at ABN Amro. “We think that much higher oil prices are not sustainable and that oil producers will then start to increase production.”

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2021 Bloomberg L.P.

Latest Stories

  • HBCUs set fundraising records in a year when alumni like Kamala Harris have risen to new heights

    For America’s Historically Black Colleges and Universities it has been a banner year.

  • Black physician's COVID-19 death highlights 'horrific' history of medical racism

    Dr. Susan Moore, a physician battling COVID-19, documented what she described as poor and hostile treatment she received at an Indiana hospital because she was a Black woman. Her death highlighted an issue that’s persisted among medical professionals since as early as the era of slavery.

  • Nancy Mace humiliated on MSNBC after being called out for parroting incorrect impeachment claim

    Mace claims Trump was not president when he was impeached, which is false

  • Russia says it would be ready to cut EU ties if hit with painful sanctions

    Russia said on Friday it would be ready to sever ties with the European Union if the bloc hit it with painful economic sanctions, a statement that Germany described as disconcerting and incomprehensible. Ties between Russia and the West, already at post-Cold War lows, have come under renewed pressure over the arrest and jailing of Kremlin critic Alexei Navalny. Three European diplomats told Reuters on Thursday the EU was likely to impose travel bans and asset freezes on allies of Russian President Vladimir Putin, possibly as soon as this month.

  • How to Add a Little Extra Luxury to Your Bath Time

    If not a lot of luxuryOriginally Appeared on Architectural Digest

  • Officials: Chauvin was ready to plead to 3rd-degree murder

    Minneapolis police officer Derek Chauvin was prepared to plead guilty to third-degree murder in George Floyd's death before then-Attorney General William Barr personally blocked the plea deal last year, officials said. The deal would have averted any potential federal charges, including a civil rights offense, as part of an effort to quickly resolve the case to avoid more protests after protests and riots damaged a swath of south Minneapolis, according to two law enforcement officials with direct knowledge of the talks. The officials spoke to The Associated Press on condition of anonymity because they were not authorized to discuss the talks.

  • Judge denies motions to issue new arrest warrant, increase bail for Kyle Rittenhouse

    A Wisconsin judge on Thursday denied requests to issue an arrest warrant and increase the bond for Kyle Rittenhouse, the 18-year-old accused of homicide for killing two people in Kenosha last summer. The Kenosha County District Attorney's Office said Rittenhouse violated the conditions of his bail after he failed to update the court with his new address. Rittenhouse's attorney said his client had to move due to threats made against him. Rittenhouse has become a cause célèbre for the alt-right, with his supporters raising enough money in November to get him released from custody on a $2 million bond. Kenosha County Circuit Judge Bruce Schroeder denied the motion to increase Rittenhouse's bail by $200,000, and said while his new address could be given to the court, it would not be made public or shared with prosecutors. "After what this town has been through in the last six months, I don't want any more problems," Schroeder said. "The police don't need any more problems. We don't need to have people's safety in jeopardy in any way." On Jan. 5, Rittenhouse was spotted at a Wisconsin bar, where prosecutors say he was drinking beer and hanging out with people singing the anthem of the Proud Boys. He was also photographed making a white supremacist hand sign. In response, a judge on Jan. 22 approved new conditions for Rittenhouse's bond, prohibiting him from drinking alcohol, having weapons, and associating with anyone known to harass others based on their race or religion. More stories from theweek.comThe most important person in the impeachment trial is missing. It isn't Trump.5 brutally funny cartoons about Republicans' twisted impeachment logicWould the Capitol mob have killed Mike Pence?

  • The ‘big lie’ exposed: Impeachment trial hears how Trump incited violence over months with ‘stolen election’

    'This wasn't about one speech': Democrats argue former president sought to make supporters believe election was 'stolen' from them, inspiring violence at Capitol as Congress certified results

  • WH: Biden remarks weren't trial prediction

    The White House press secretary says President Joe Biden wasn’t offering a “projection or a prediction” on the outcome of Donald Trump’s impeachment trial when Biden weighed in on the proceedings earlier Thursday. (Feb. 11)

  • Merkel promises lockdown will not last a day longer than necessary

    Chancellor Angela Merkel urged Germans on Thursday to have a little more patience after agreeing with regional leaders to extend a coronavirus lockdown until March 7 and said restrictions would not last a day longer than necessary. A gradual fall in daily infections has raised pressure for an easing of tight restrictions in place since mid-December and Merkel agreed with state premiers on Wednesday that some schools and hairdressers could open sooner than March 7. With neighbouring countries seeking to contain major outbreaks, Germany will impose stricter controls on people seeking to enter its territory from the Czech Republic and Austria's Tyrol region from Feb. 14, an Interior Ministry spokesman said on Thursday.

  • 'I am a child!' Pepper spray reflects policing of Black kids

    The 9-year-old Black girl sat handcuffed in the backseat of a police car, distraught and crying for her father as the white officers grew increasingly impatient while they tried to wrangle her fully into the vehicle. “This is your last chance,” one officer warned. “Otherwise pepper spray is going in your eyeballs.”

  • Why China may not be cheering Myanmar’s military takeover

    Myanmar’s coup has put a spotlight on its relationship with China. But the military taking back more power isn’t necessarily a plus for Beijing.

  • Mike Pence's 'nuclear football' was also apparently at risk during the Capitol siege

    New security camera footage unveiled Wednesday at former President Donald Trump's impeachment trial showed just how close the mob ransacking the Capitol on Jan. 6 came to nabbing former Vice President Mike Pence and his family. When U.S. Strategic Command saw the footage, CNN reported late Thursday, they realized how close the mob came to Pence's "nuclear football," the backup nuclear launch system a military aide carries near the vice president at all times in case the president is incapacitated. The military officer, apparently seen fleeing down back stairs with Pence and his family, never lost control of the backup "football," and Trump was safe in the White House during the entire period Pence was being hunted down, a defense official told CNN. That means the Pentagon would not have needed to deactivate Pence's nuclear launch system, even if they had been aware it was in danger. And if the insurrectionists had managed to grab the "football," they would not have been able to bypass the security systems, the official added. That's not the point, Kingston Reif of the Arms Control Association told CNN. "The risk associated with the insurrectionists getting their hands on Pence's football wasn't that they could have initiated an unauthorized launch. But had they stolen the football and acquired its contents, which include pre-planned nuclear strike options, they could have shared the contents with the world," creating "a security breach of almost incomprehensible proportions." The people who broke into the Capitol were clearly not opposed to taking home trophies. Florida Man, Helpfully, Includes Closeup Of Barcode On Damaged U.S. Senate Property In His Facebook Post About Storming The U.S. Capitol pic.twitter.com/d5cSXVkkEA — Ryan J. Reilly (@ryanjreilly) February 11, 2021 Thankfully, we never have to know what they would have done had they found Pence, or his nuclear strike machine. More stories from theweek.comThe most important person in the impeachment trial is missing. It isn't Trump.5 brutally funny cartoons about Republicans' twisted impeachment logicWould the Capitol mob have killed Mike Pence?

  • Why is the spot of the deadly vehicle pileup on I-35W in Fort Worth so dangerous?

    More than $1.4 billion has been spent expanding I-35W in Fort Worth, but traffic congestion is still bad.

  • Man dies by suicide outside U.S. representative's Texas home

    Police said there is no reason to believe there is a further threat to Van Duyne, a Republican. The FBI is assisting in the investigation.

  • Myanmar coup leader: 'Join hands' with army for democracy

    Myanmar's coup leader used the country's Union Day holiday on Friday to call on people to work with the military if they want democracy, a request likely to be met with derision by protesters who are pushing for the release from detention of their country's elected leaders. “I would seriously urge the entire nation to join hands with the Tatmadaw for the successful realization of democracy,” Senior General Min Aung Hlaing said using the local term for the military. In addition to the military commander's message published Friday in the Global New Light of Myanmar newspaper, the new junta also announced it would mark Union Day by releasing thousands of prisoners and reducing other inmates’ sentences.

  • Biden to speak with Israel's Netanyahu soon, White House says

    U.S. President Joe Biden plans to speak with Israeli leader Benjamin Netanyahu soon, the White House said on Thursday without providing a date. Biden’s failure to include Netanyahu so far in his calls with foreign leaders has raised eyebrows in Israel and among Middle East experts. Former Presidents Barack Obama and Donald Trump both spoke to him within days of taking office.

  • Coronavirus latest news: R number drops below 1 for first time since July

    School return date must be 'signed in blood', Johnson told UK's lax hotel quarantine scheme is 'very risky,' warns leading Australian epidemiologist Coronavirus infections 'will be back to summer levels by early March' Teachers and police set to get vaccine priority after over-50s Judith Woods: Families are cracking under lockdown Subscribe to The Telegraph for a month-long free trial The reproduction number, or R value, of coronavirus has fallen below one for the first time since July and is now estimated to be between 0.7 and 0.9 across the UK. In a sign that lockdown restrictions are having an impact and the epidemic is shrinking, scientists advising the Government gave their most optimistic outlook for the R number since cases fell last summer. It comes as new data from the Office for National Statistics shows a drop in infections, with around one in 80 people in private households in England having Covid-19 between January 31 and February 6, the equivalent of 695,400 people. This is down from around one in 65 people for the period January 24 to 30. On February 9, the latest date for which figures are available, the number of patients in hospital with Covid-19 in the UK stood at 25,621. But while scientists advising the Government believe cases of Covid-19 are dropping at a decent pace across England, they have warned that infection levels remain high. Kevin McConway, Emeritus Professor of Applied Statistic from The Open University, said: “These revisions of the ranges for R and the growth rate are more good news, on top of the good news from the ONS Infection Survey earlier today." "But that doesn’t mean we can take the foot off the brake yet." Follow the latest updates below.

  • China bans BBC World News from broadcasting

    China has criticised the BBC for its reports on coronavirus and persecution of the Uighurs.

  • Mom tackles man accused of peeping in daughter's window

    Phyllis Pena said she charged at him before he could run away, and held him until police in Lake Jackson, Texas, arrived.