(Bloomberg) — Oil steadied following the first back-to-back weekly gain since May after Saudi Arabia and Russia pledged measures to tighten supply.
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Brent futures traded near $78 a barrel after advancing 4.8% last week, with the market flashing signs of strength following the announced supply cuts by the OPEC+ heavyweights. Speculators have increased their bullish bets, raising net-long positions for the global benchmark and West Texas Intermediate oil.
Oil remains about 9% lower for the year due in part to China’s lackluster economic recovery and aggressive monetary tightening by central banks. A solid US employment report keeps the Federal Reserve on track to boost interest rates this month, maintaining headwinds for crude prices.
The US announced on Friday that it’s purchasing 6 million more barrels of crude for the Strategic Petroleum Reserve as the nation continues to slowly refill the emergency stockpile. The purchases, scheduled for October and November, come as the reserve is at its lowest point in 40 years.
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Read More: Oil Steadies After First Back-to Back Weekly Advance Since May