(Bloomberg) -- Oil held steady after the biggest daily gain in a month as US crude’s prompt spread strengthened and stockpiles logged their third consecutive weekly decline.
West Texas Intermediate edged down below $83 after advancing 2.6% on Wednesday. Nationwide inventories shrank by 4.87 million barrels last week to the lowest level since February. The data strengthened WTI’s prompt spread — the price difference between its two nearest contracts — to $1.52 in backwardation. The bullish pattern signals demand is outweighing supplies in the short term.
Meanwhile in Canada, wildfires once again threatened 400,000 barrels a day of oil production, putting piped shipments to the US at risk. The fires helped boost Canadian heavy crude prices.
Oil has risen about 15% this year on OPEC+ production cutbacks, which have offset increased volumes from nations outside the cartel. The group will hold a market monitoring meeting next month, at which no changes to its fourth-quarter output plans are expected.
In recent days, US prices have gained at a faster pace than the global Brent benchmark. That has left WTI with its smallest discount relative to Brent since October.
To get Bloomberg’s Energy Daily newsletter in your inbox, click here.
©2024 Bloomberg L.P.
