Crude-oil futures were enjoying mixed fortunes in London trading Friday, with most eyes on the upcoming U.S. nonfarm payrolls data for an indicator of the health of the major energy-consuming economy.
At 1057 GMT, the front-month April Brent contract on London's ICE futures exchange was down 52 cents at $110.63 a barrel.
The front-month April light, sweet crude contract on the New York Mercantile Exchange was trading 3 cents higher at $91.59 a barrel.
The price differential between the two key contracts, known as the spread, has narrowed somewhat. At one point it moved to less than $19, below which is hasn't been with any consistency since Feb. 4.
Dennis Gartman, publisher of the Gartman Letter, said there has been a "material shift" in term structures.
A sharp bullish move in the WTI structure indicates that demand for the crude is rising relative to supply, Mr. Gartman said, while at the same time the Brent backwardation, where prices for near-term delivery are higher than those for delivery further the future, has narrowed appreciably suggesting that the previous tightness in supply is waning.
This may indicate the beginning of a "material change" in the spread, Mr. Gartman said with Brent narrowing its premium to WTI "perhaps materially and rather swiftly."
Friday, trading was mostly still being influenced by the same factors from the previous session.
The restart of the 90,000 barrel-a-day Brent oil pipeline, no change in policy from either the Bank of England or the European Central Bank and indications of increased exports from the Organization of the Petroleum Exporting Countries all kept a lid on Brent.
WTI, meanwhile, had gained on good U.S. jobless claims data and news that Valero is considering using railroads to move crude from its Alberta fields to refineries in California and Louisiana.
Nonfarm payroll data are due 1330 GMT. Consensus is for a 160,000 rise in payrolls and unemployment to fall slightly to 7.8%. Even a stronger number may not be enough to lift crude, which has been stuck in a down trend since the start of February, erasing all gains made since the start of the year.
The ICE's gasoil contract for March delivery was up $1.25 at $932.25 a metric ton, while Nymex gasoline for April delivery was up 127 points at 3.1360 cents a gallon.
