(Bloomberg) -- Oil was steady after posting a third weekly gain as a demand recovery in key regions raised optimism about rising fuel consumption, despite a Covid-19 flare-up in parts of Asia.Futures in New York traded near $65 a barrel after advancing 2.4% on Friday. The U.S. and China along with parts of Europe are rebounding strongly from the pandemic as a vaccination drive accelerates. The prompt timespread for global benchmark Brent oil has also started widening again in a bullish backwardation structure, signaling a tightening market.Meanwhile, the supply of gasoline at pump stations was in the process of returning to normal after the restart of Colonial Pipeline Co., although fuel disruptions may still be seen for weeks in parts of the U.S. East and South.Oil has managed to break out from a tight range near $60 a barrel and resume its upward momentum, but constant reminders that parts of the world remain far from a full recovery from the pandemic continues to dent the outlook. The coronavirus resurgence in India is still crippling the nation, while new outbreaks in Singapore and Taiwan show authorities need to remain vigilant.Another wildcard is the prospect of more crude flows from Iran as the nation seeks to revive a nuclear deal and free itself of U.S. sanctions, but talks are ongoing and progress on a solution remains uncertain.The prompt timespread for Brent was 35 cents in backwardation -- where near-dated contracts are more expensive than later-dated ones -- compared with 23 cents a week earlier. It narrowed to 17 cents on Thursday.The U.S. added slightly more than 30,000 cases on Saturday, sending the nation’s rolling one-week average to the lowest level since late last June, according to data compiled by Johns Hopkins University and Bloomberg. In the U.K., more than 20 million people, or 38% of the British adult population, are fully vaccinated against the coronavirus, the government said Sunday.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
With peak oil demand looming, countries around the world are eager to sell as much oil as they can while there is still growth in the market
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