Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Crude Oil Climbs as Reopening Hopes Drive Prices Higher

CommoditiesMay 04, 2021 09:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse   

Investing.com -- Crude oil prices strengthened Tuesday, surging on optimism that the latest news on reopening in the U.S. and Europe will underpin demand.

By 9:35 AM ET (1435 GMT), U.S. crude futures traded 1.9% higher at $65.68 a barrel, while the international benchmark Brent contract rose 1.9% to $68.86. Both contracts have climbed to levels not seen in over two years.

U.S. Gasoline RBOB Futures were up 2.4% at $2.1519 a gallon.

Helping the tone has been further signs of the developed world reopening their economies as vaccination programs make large inroads into their adult populations.

New York, New Jersey and Connecticut, states that were among the hardest hit by the pandemic, are set to lift most coronavirus-related restrictions on business and social life within two weeks, while Florida lifted all restrictions on Monday.

The European Union has already unveiled plans to relax bans on international travel, while the U.K. is also set to allow international travel from the middle of May.

This is tending to overshadow the health crisis in India as Covid-19 infections and deaths mount in the world’s third-largest oil importer.

“Preliminary data for Indian fuel demand is already available, which shows that gasoline demand fell 6.3% MoM to total 2.14mt, which is the lowest since August,” said analysts at ING, in a note. “Given that it still appears as though Covid-19 in India have not peaked, we expect to see further downside to fuel demand over May.”

Turning to supply, the Organization of Petroleum Exporting Countries pumped an average of 25.27 million barrels a day last month, only 50,000 a day less than in March, according to a Bloomberg survey.  

“Given that OPEC+ will start to gradually ease production cuts this month, along with Saudi Arabia gradually easing its additional voluntary cuts, we should see almost 530Mbbls/d of additional supply coming back to the market over May,” ING added.

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 30.

In corporate news, Saudi Aramco (SE:2222) posted a sharp increase in profit in the first quarter of 2021, although the free cash flow generated by the world’s largest oil company was quite enough to cover its hefty dividend payout.

 

 

Crude Oil Climbs as Reopening Hopes Drive Prices Higher
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. 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 (1)
Alan Rice
Alan Rice May 04, 2021 12:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Crude Target : $500/bbl /2024.
 
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
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.
Continue with Google
or
Sign up with Email