Brent oil edges above $75 as investors assess tightening market

Brent oil edges above $75 as investors assess tightening market

Brent oil hit $75 a barrel for the first time in more than two years amid signs of a rapidly tightening market.

Futures in London edged above that mark in early Asian trading after rising 1.9% in the previous session, the most in four weeks. The market continues to firm in a bullish structure, with one time spread for West Texas Intermediate (WTI) expanding to the widest backwardation in seven years. Genscape Inc. reported stockpiles at the key American storage hub of Cushing fell again last week from the lowest level since March 2020, according to people familiar.

Brent oil has rallied more than 40% this year as a strong rebound from the pandemic in the US, China and Europe underpins increasing fuel consumption, although a virus comeback in parts of Asia is a reminder that the recovery will be uneven. The global crude benchmark may even advance to $100 a barrel next year as travel demand rebounds, according to Bank of America Corp.