West Texas Intermediate crude headed for its first weekly gain in a month amid speculation that the budget standoff in the U.S. will be resolved without a debt default that would harm economic growth and fuel demand.
West Texas Intermediate crude traded near a four-day high amid signs of economic recovery in Europe and speculation that western governments may launch a military intervention in Syria. Brent’s premium to WTI narrowed.
West Texas Intermediate climbed to its highest in 16 months and was poised for a fourth weekly gain on signs the U.S. economic recovery is gaining strength. WTI’s discount to Brent shrank to the narrowest since October 2010.
Silver may surge to as much as $23 an ounce next year, the highest price since 1980, as investors seek a cheap alternative to gold and a global economic recovery boosts industrial demand, according to Commerzbank AG.
Eugen Weinberg, head of commodities research at Commerzbank AG in Frankfort, says low oil prices are not sustainable in the longer term, but will continue through the summer. Weinberg talks with Bloomberg's Ken Prewitt on Bloomberg Radio's "Bloomberg - The First Word."
The Organization of Petroleum Exporting Countries forecast the world will need less of its crude next year, even as global oil demand growth rebounds to its strongest pace since 2010, amid competing supply sources.