New York, July 22 (QNA) - Oil prices spiked again, trading near a six-week high on Wednesday, gaining around 3%, as supply concerns increased due to escalating crises in the Middle East.
Brent crude futures rose around 3%, or $2.31, to reach about $93.83 a barrel, their highest level in nearly six weeks, after hitting $95.47 during the session.
US West Texas Intermediate (WTI) crude rose $1.91, or 2.26%, to $86.25 a barrel.
Both crude benchmarks reached their highest levels since June 11 during the session, while the forward price spread for Brent crude between the front-month contract and the contract due three months later widened to $8.80 a barrel, its highest level since May 22.
This demonstrates growing backwardation, or an inverted market in which spot contracts trade at a premium to futures contracts, and is typically viewed as a sign of tightening near-term supply. (QNA)