Connect with us

Hi, what are you looking for?

Commodities & Futures

Crude Oil Higher; Economic Rebound Outweighs Extra Supply

Commodities56 minutes ago (Apr 06, 2021 09:18AM ET)

(C) Reuters.

By Peter Nurse

Investing.com — Crude oil prices strengthened Tuesday, rebounding on signs of a global economic recovery even with the market set to received additional supply in the next few months.

By 9:20 AM ET (1420 GMT), U.S. crude futures traded 1.8% higher at $59.70 a barrel, while the international benchmark Brent contract rose 1.6% to $63.14. Both contracts fell around 4% on Monday.

U.S. Gasoline RBOB Futures were up 1.6% at $1.9922 a gallon.

Earlier Tuesday, data showed the recovery in China’s services sector picked up speed in March, with the Caixin/Markit services Purchasing Managers’ Index rising to 54.3, the highest since December, well above the 50-mark that separates growth from contraction on a monthly basis.

This follows on from Monday’s U.S. equivalent release, which showed U.S. services activity hit a record high, and Friday’s stellar jobs report.

This has helped the market focus move from the agreement last week by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, to bring back 350,000 barrels per day of supply in May, another 350,000 barrels in June and a further 400,000 in July.

Staying with supply issues, indirect talks between the United States and Iran are set to start in Vienna this week to revive the 2015 nuclear deal between Tehran and world powers, potentially leading to the lifting of sanctions on Iran’s energy sector.

“While any breakthrough at today’s meeting and the swift removal of U.S. sanctions is unlikely, talks do appear to be moving in the right direction for the eventual lifting of sanctions,” said analysts at ING, in a research note.

“However, we believe that, even with additional supply from OPEC+ along with higher Iranian output, the market will still be drawing down inventories through the year, so should have little impact on the prospect for higher prices later in the year.”

Of additional interest later in the session will be the U.S. crude oil supply data from the American Petroleum Institute for the week ending April 2.

In corporate news, U.K. oil giant BP (NYSE:BP) announced Tuesday it has achieved its $35 billion net-debt target about a year earlier than expected, helped by trading profits and the strong rally in crude prices since November and resilient operations.

Crude Oil Higher; Economic Rebound Outweighs Extra Supply

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

At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores.

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