(Bloomberg) — Oil slipped after a five-day advance, with a likely escalation in the Middle East conflict offset by signs of weakening global demand growth.
Brent traded near $82 a barrel after rising by almost 8% over the previous five sessions, with West Texas Intermediate declining back below $80. While the US believes an attack by Iran on Israel has grown even more likely and may come as soon as this week, there are signs of weak consumption, which led OPEC to trim its demand forecasts for this year and next.
Crude is modestly higher for the year, supported by OPEC+’s continued cutbacks and as equities rebounded from last week’s rout. An outlook from the International Energy Agency is due later on Tuesday, while US inflation data on Wednesday may offer clues on monetary policy in the world’s largest oil consumer.
Timespreads are signaling underlying strength in markets, with the gap between Brent’s two nearest contracts widening further. The measure was 93 cents a barrel in the bullish backwardation pattern, compared with 34 cents at the start of last week.
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