Diesel Drives Oil Rally as Supply Concerns Linger

摘要

Oil futures bounced higher on Friday,with diesel leading the way higher amid ongoing concerns over global supply.In London,Brent crude for November delivery settled up 73￠ at $90.65 per barrel,while in New York,October West TexasIntermediate(WTI)on Nymex rose by 64￠ to end the session at $87.51/bbl.Front-month Brent and WTI fi nished up $2.10 and $1.96 for the week,respectively,riding tailwinds from news early in the week thatSaudi Arabia and Russia will extend their production and export cuts through the end of the year.That will take some 1.3 millionbarrels per day off the market until at least January,with broader Opec-plus cuts extending beyond that.The production cuts primarily target medium and heavy grades,which tend to be richer in middle-of-the-barrel products such as dieselthan lighter feedstocks.But there are more direct elements supporting diesel futures,which spiked by 8.65￠ on Friday to close at $3.2991 per gallon,leadingthe way higher for the entire petroleum complex.