Azeri Light crude tumbles

Azeri LT CIF crude oil, exported from Azerbaijan to the world markets, decreased by $ 0.12 (-0.8%), settling at $ 59.39 per barrel.

The lowest price for Azeri Light was recorded on April 21, 2020 ($ 15.81), and in July 2008, the all-time high was $ 149.66.

Oil prices climbed on Friday to their highest levels in a year, extending a run of strong gains on signs of economic growth in the United States and a continued commitment by producers to hold back crude supply.

“Rising confidence in an upturn in economic and oil demand recovery around the corner is a major impetus for crude,” said Vandana Hari, an energy analyst at Vanda Insights.

“Right now, the concurrent tightening of supply due to the additional Saudi cuts is adding to the tailwinds,” Hari said. “Brent may be well on its way to the $60 milestone.”

Brent crude futures climbed 40 cents, or 0.7%, to $59.24 a barrel by 0428 GMT, after hitting a high of $59.41, its highest since February 20 last year. Brent is on track to rise 6% this week.

U.S. West Texas Intermediate (WTI) crude futures jumped 42 cents, or 0.8%, to $56.65 a barrel, after touching a high of $56.84, its top since January 22 last year. The benchmark contract is on track for a weekly gain of nearly 9%, which would be its biggest weekly gain since October.

In a sign of tightening crude oil supplies, the six-month backwardation in Brent and WTI futures - when the price for prompt delivery is higher than the price for future delivery - jumped to 13-month highs for both contracts at $2.41 and $2.30 a barrel, respectively.
Markets were encouraged by stronger-than-expected orders for U.S. goods in December, pointing to strength in manufacturing and hopes for swift approval by lawmakers of President Joe Biden’s proposed $1.9 trillion coronavirus aid plan.

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