Please try another search
© Reuters. FILE PHOTO: A sticker reads crude oil on the side of a storage tank in the Permian Basin
By Noah Browning
LONDON (Reuters) - Oil prices rose on Monday, with Brent reaching $70 a barrel, as data showed China's economic recovery accelerated at the start of 2021, boosting the energy demand outlook at the world's largest oil importer.
Brent crude futures for May were steady at $69.21, down 1 cent a barrel by 1150 GMT while U.S. West Texas Intermediate crude for April was at $65.62 a barrel, up 1 cent.
China's industrial output growth quickened in January-February, beating expectations, while its daily refinery throughput data rose 15% from the same period a year earlier, data showed.
"There is increasing confidence that global oil demand is rebounding as U.S. Covid-19 death toll is decreasing while China's apparent oil demand rebounded",
Market structure which encourages prompt consumption of oil, a pact by top producers to keep output largely reined in and a rebound to demand due to vaccine roll-outs will keep pushing prices upwards despite any temporary setbacks, analysts said.
"Futures spreads remain in backwardation, and dips in prices remain shallow and short-lived," said senior market analyst at OANDA Jeffrey Halley,
"Both (benchmarks) will find a procession of willing buyers if those regions are visited."
The supply cuts come as the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, decided earlier this month to extend most of its supply cuts into April.
Further supporting prices, top oil exporter Saudi Arabia has cut the supply of April-loading crude to at least four north Asian buyers by up to 15%, while meeting the normal monthly requirements of Indian refiners, refinery sources told Reuters on Friday.
Earlier in February, the United States overtook Saudi Arabia to be India's second-largest supplier, data from trade sources showed.
Separately, U.S. energy firms have cut the number of oil and natural gas rigs operating by one in the first weekly drop since November, according to Baker Hughes Co.
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.