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

Crude Rises on Economic Growth, Vaccines and Falling Gasoline Stocks

CommoditiesMar 11, 2021 09:12AM 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 Thursday, helped by signs of an improving economic outlook, a ramped up vaccination program and a sharp decline in U.S. gasoline stocks.

By 9:10 AM ET (1410 GMT), U.S. crude futures traded 1.2% higher, at $65.23 a barrel, while the international benchmark Brent contract rose 1.4%, to $68.82. 

U.S. Gasoline RBOB Futures were up 1.4%, at $2.1085 a gallon.

The House of Representatives passed the Biden administration’s $1.9 trillion Covid relief bill on Wednesday. 

The direct payments from the plan will start going out this month through direct deposits, according to Brian Deese, a top White House economic aide Thursday, helping individuals and small businesses that were hurt badly by the restrictions required to combat the Covid-19 pandemic. 

Yet last week’s official employment report already showed strong growth creation, while data released earlier Thursday showed the number of people making initial claims for jobless benefits fell last week to its lowest level since the pandemic erupted a year ago.

Adding to the positive impetus is a ramped-up vaccination program, which has resulted in almost a quarter of the adult population in the U.S. having had at least one vaccine shot.   

President Biden has promised all adults will be vaccinated by the end of May, and announced Wednesday that will double the U.S.'s order of Johnson & Johnson (NYSE:JNJ)’s vaccine, bringing the country’s supply to enough for 500 million people.

Against this background domestic gasoline supplies slid last week to the lowest in about four months, while demand rose to the highest since November, according to Energy Information Administration data, released Wednesday. 

“With total gasoline stocks standing at a little under 232MMbbls, they are the lowest they have been in at least 5 years at this stage of the year,” said analysts at ING, in a research note.

Crude inventories, however, rose by 13.8 million barrels in the same week, as the oil industry continued to feel the effects of a mid-February winter storm that stalled refining and forced production shut-ins in Texas.

On the physical side, a number of oil producers have started increasing their official selling prices, noted ING. 

“Over the weekend, Saudi Arabia increased their OSP for Arab Light into Asia for April shipment by US$0.40/bbl to US$1.40/bbl over the benchmark, and to the highest level since March last year. Yesterday Iraq followed suit, increasing its OSP for Basrah Light into Asia by US$0.15/bbl to US$1.30/bbl over the benchmark for April.” the bank added.

 

Crude Rises on Economic Growth, Vaccines and Falling Gasoline Stocks
 

Related Articles

Crude Oil Lower; Next Week's OPEC Meeting Eyed
Crude Oil Lower; Next Week's OPEC Meeting Eyed By Investing.com - Jun 24, 2021

By Peter Nurse    Investing.com -- Crude oil prices edged lower Thursday, as traders contemplated the possibility of additional supply being announced at next week’s meeting of top...

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)
CHAD TENDIES
CHAD TENDIES Mar 11, 2021 9:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
“Economic growth” LOL
 
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