Oil rises after IEA adds to chorus of views on tighter outlook

Oil climbed toward a 10-month high as the International Energy Agency added to warnings of a supply shortfall through the end of the year.

West Texas Intermediate traded near $89 a barrel, after dipping 0.4% on Wednesday. Demand will eclipse supply by 1.2 million barrels a day on average during the second half, the IEA projected Wednesday. That came a day after OPEC and the US also said they saw global consumption exceeding production.

The bullish outlooks added momentum to a rally that started in mid-June as Saudi Arabia and Russia curbed supply while US and Chinese demand proved relatively resilient. WTI has risen 13% over the past three weeks, and time spreads are in a bullish backward-dated pattern, indicating scarce supply.

Source: Moneyweb