- Oil is trading higher, around $86.77, heading for a second consecutive weekly gain
- Geopolitical risk premium has helped push oil prices higher after Israel increased preparations for a potential attack by Iran on Thursday
- Prices are higher despite a surge in the US Dollar following strong US employment data
- Options, time spreads, and fund flows show a bullish crude market (BBG)
- With the recent rally in oil prices, Brent is up 18% this year above $90, while WTI is trading at the highest price in several months
- Several indicators show strong bullish signals in crude amid the backdrop of the OPEC+ supply cuts, which have helped tighten the market
- A unique market condition is observed as Brent call options are trading at a premium to puts, a scenario that is rare as oil is generally in put-skew.
- The shape of the forward curve indicates a strong market, as the spread between the two nearest December contracts is the widest since October
- Speculators have been increasing purchases of oil futures, with managed money positioning in WTI now the most bullish in over a year
