“There’s an upward bias here, considering there’s supply-side outages and potential ones lurking,” Michael Tran, an RBC Capital Markets LLC commodity strategist, told Bloomberg. “The market could be tighter than what people previously anticipated.”
Related: 5 Oil Services ETF Surge on Crude Outlook, Schlumberger Revenue Beat
Meanwhile, energy company stocks have strengthened on encouraging earnings reports and speculation that the Federal Reserve was thinking of an early end to its efforts in cutting the balance sheet.
However, the strength in crude oil could be at risk as the continued U.S.-China trade negotiations and government shutdown threaten the growth outlook.
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