Connect with us

Hi, what are you looking for?

Commodities & Futures

Oil Down, But Closes Week Near $70 Mark Over Fuel Demand Recovery Hopes

Commodities56 minutes ago (Mar 11, 2021 09:19PM ET)

(C) Reuters.

By Gina Lee

Investing.com – Oil was down Friday morning in Asia. The black liquid gave up some gains from the previous session even as investors cheered the last step of the U.S.’ stimulus package that drove fuel demand recovery hopes up.

Brent oil futures inched down 0.07% to $69.47 by 8:59 PM ET (01:59 AM GMT) and WTI futures were down 0.32% to $65.81.

U.S. President Joe Biden signed the $1.9 trillion package into law on Thursday, a day after the House of Representatives gave its final approval to the bill.

Investors also remained optimistic as the advent of spring saw more cars on the road. Vehicle miles driven on American highways reportedly increased 10% during the past week from the previous seven days, while U.K. road use also increased.

The Organization of Petroleum Exporting Countries (OPEC), however, struck a cautious note about demand outlook on Thursday, as it lowered estimates for crude that it will need to pump over the next two quarters.

However, the decision made by OPEC and its allies (OPEC+) earlier in the month to continue current output cuts also continues to tighten the market, and the global COVID-19 vaccine rollout continues to drive optimism over fuel demand recovery.

“Assuming vaccination programs are successful, we expect pent-up demand for gasoline to be released this summer during the U.S. and European driving season,” FGE analysts said in a note.

Oil is closing what has been a volatile week, with prices rallying to their highest point since October 2018 on Monday after the attack on a Saudi Arabian facility. Prices pulled back as the week progressed, however, and are poised to post a modest weekly loss.

The prompt timespread for Brent futures was 63 cents a barrel in backwardation on Thursday, compared with 54 cents during the previous week.

Oil Down, But Closes Week Near $70 Mark Over Fuel Demand Recovery Hopes

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt.

Uncategorized

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.

Uncategorized

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora.

Disclaimer: Buzzclever.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Buzz Clever. All Rights Reserved