Crude strongest since March as market eyes Biden transition, Yellen appointment

摘要

Crude oil futures settled at eight-month highs Nov. 24 as Presidentelect Joe Biden began his transition to the presidency in earnest. NYMEX January WTI settled $1.85 higher at $44.91/b, and ICE January Brent was up $1.80 at $47.85/b. Oil prices moved higher overnight after US General Services Administration chief Emily Murphy, whose agency is responsible for overseeing presidential transitions, told the Biden team that her agency would provide resources needed to ensure a smooth handover of power between the administrations. President Donald Trump, while reiterating his campaign would continue to pursue legal actions to prove its victory, offered his support for the move Nov. 23, but notably stopped short of offering a traditional concession. NYMEX December RBOB settled up 5.42 cents on Nov. 24 at $1.2582/gal, and December ULSD was 4.90 cents higher at $1.3595/gal. Crude oil forward curves turned more bullish amid the rally. The contango in front-month versus year-ahead WTI futures narrowed to 12 cents/b, while year-ahead ICE Brent futures settled 18 cents above the front month contract, opening the first backwardation in that part of the curve since February 26.