Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Brent ends at two-year high as demand outlook counters supply fears

Commodities May 28, 2021 03:51PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Crude oil storage tanks are seen from above at the Cushing oil hub, in Cushing, Oklahoma, March 24, 2016. REUTERS/Nick Oxford/File Photo

By Jessica Resnick-Ault

NEW YORK (Reuters) -Oil prices ended the week more than 5% higher, with global benchmark Brent edging up on Friday to settle at a two-year high, as strong U.S. economic data and expectations of a rebound in global demand outweighed concerns about more supply from Iran once sanctions are lifted.

Brent settled 17 cents or 0.2%, higher at $69.63 a barrel, its highest close since May 2019. U.S. West Texas Intermediate crude settled down 53 cents a barrel, or 0.79% at $66.32.

"Boosted by good economic data and risk appetite among investors on the financial markets, Brent is making a renewed bid for the psychologically important $70 per barrel mark," said Commerzbank (DE:CBKG) analyst Eugen Weinberg.

"Concerns about demand because of the pandemic are giving way to optimism in view of the rapid return of consumers," he added.

Analysts expect global oil demand to rebound closer to 100 million barrels per day in the third quarter on summer travel in Europe and the United States following widespread COVID-19 vaccination programmes.

"Gasoline demand has now exceeded 2019 levels in many areas," ANZ analysts said in a note.

Robust economic data from the United States, the world's largest economy and oil consumer, also lent support as the number of Americans filing new claims for unemployment benefits fell to the lowest since mid-March 2020, beating estimates.

Rising coronavirus infections in Asia put pressure on prices. Infections in the South Asia region surpassed 30 million on Friday, according to a Reuters tally, led by India which is struggling with a second COVID-19 wave and a vaccine shortage across the region.

The prospect of more Iranian oil coming on to the markets also capped the gains.

"Iran is going to slow down the rally," said Bob Yawger, director of energy futures at Mizuho in New York, adding that market participants were being cautious heading into the weekend on the possibility that a deal between Iran and Western powers could inject more supply into the market.

Iran and global powers have negotiated in Vienna since April to work out steps that Tehran and Washington must take on sanctions and nuclear activities to return to full compliance with Iran's 2015 nuclear pact with world powers.

Within the United States, Yawger said concerns about the potential for demand on this Memorial Day holiday weekend being lackluster. "There are some areas of concern," he said.

More than 34 million Americans are expected to take to the highways between May 27 and May 31, the holiday weekend which marks the start of the summer driving season. But they face gasoline prices at about $3.04 a gallon on average, the most expensive since 2014.

Also in the United States, crude output jumped 14.3% in March to 11.2 million barrels per day, after being hit by a cold snap in February, the government said in its latest monthly report. The oil rig count, an early indicator of future production, has risen for nine months in a row, according to energy services firm Baker Hughes. [nL2N2NF1TD][RIG/U]

Balancing expectations of a recovery in demand against a possible increase in Iranian supply, the Organization of the Petroleum Exporting Countries and allies, including Russia, a group known as OPEC+, is likely to stick to the existing pace of gradually easing oil supply curbs at a meeting on Tuesday, OPEC sources said.

Brent ends at two-year high as demand outlook counters supply fears
 

Related Articles

Oil drops as China data weighs
Oil drops as China data weighs By Reuters - Aug 15, 2022 14

By Rowena Edwards LONDON (Reuters) -Oil prices fell by more than $4 a barrel on Monday on demand fears as disappointing Chinese economic data renewed global recession concerns....

Crude Oil Slumps; Chinese Data, Additional Supply Weigh
Crude Oil Slumps; Chinese Data, Additional Supply Weigh By Investing.com - Aug 15, 2022

By Peter Nurse    Investing.com -- Oil prices slumped Monday, weighed by concerns over slowing Chinese economic growth as well as raised potential for increased supply from both...

Explainer-Why Europe faces climbing energy bills
Explainer-Why Europe faces climbing energy bills By Reuters - Aug 15, 2022

By Nina Chestney A global surge in wholesale power and gas prices means households across Europe face much higher energy bills this year and beyond, with the region's most...

Add a Comment

Comment Guidelines

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.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Kishore Sekar
Kishore Sekar May 30, 2021 12:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
can anyone say what will be oil in next week
Alan Rice
Alan Rice May 30, 2021 12:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sure.
Gene Kret
Gene Kret May 28, 2021 11:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oil will nose dive on Tuesday. There will be negative news on fossil fuel and another huge green push. The reality of it is demand by mid July will grow to new levels. For now wait.
Robert Cutler
Robert Cutler May 28, 2021 3:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Will crude oil price exceed Putin's age
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

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.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email