Oil’s Red-Hot Rally Cools After Surge to Highest Since 2014
(Bloomberg) -- Oil dropped alongside other financial assets and commodities as crude’s sizzling rally ran out of steam after hitting a seven-year high.
Futures in New York slumped more than 3%, before paring losses to trade near $84 a barrel, following a decline in stocks and raw materials including copper. Crude has posted a gain of more than 10% so far this year, despite weakness in stock markets as monetary policy tightens.

Though crude was pressured on Friday, much of Wall Street has been growing steadily more bullish on prices. Morgan Stanley joined Goldman Sachs Group Inc. in forecasting $100 oil later this year, although Citigroup Inc. cautioned that sticking to a bullish view could be dangerous after this quarter. The International Energy Agency this week said the oil market was looking tighter than previously thought, with demand proving resilient despite the rapid spread of the omicron variant.
“Today the market is experiencing a small set back with the rest of commodity markets, but it is likely not more than consolidation after the recent rally,” said Jens Pedersen, senior analyst at Danske Bank A/S.
Crude’s bumper rally had pushed many of the main futures contracts into overbought territory on a technical basis. Brent, WTI and heating oil futures all moved out of that zone amid the sharp price pullback early Friday.
Still, the focus remains on how much further the Organization of Petroleum Exporting Countries and its allies can lift output. Pavel Zavalny, head of the Russian Duma Energy Committee, said restoring output won’t be easy amid technical challenges and underinvestment.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More oil news

Commodity Traders Can’t Ignore India’s Growth, Oil Minister Says

Isuzu to Build Car Plant in South Carolina as Trump Tariffs Loom

SoftBank Weighs Debt-Heavy Financing in $500 Billion AI Push

Stocks Climb as Traders Brush Aside Tariff Threats: Markets Wrap

Moove Works to Control Fire Within Complex in Rio de Janeiro

Stocks Slide as Tariff Angst Adds to Price Worries: Markets Wrap

China’s Oil Teapots Cut Runs to Pandemic Levels After Sanctions

China Refiners Set to Resell US Oil Cargoes After Tariff Blitz

Shell starts up new facility in UK North Sea, restoring production from the Penguins field
