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

Oil Prices Gain on Demand Recovery Bets Ahead of Summer Driving Season

CommoditiesMay 03, 2021 02:47PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Yasin Ebrahim

Investing.com - Oil prices settled higher Monday, supported by renewed bets on a recovery in energy demand as the U.S. reopening picks up speed ahead of the summer driving season.

On the New York Mercantile Exchange, crude futures for June delivery rose 1.43% to settle at $64.49 a barrel, while on London's Intercontinental Exchange (NYSE:ICE), Brent rose 1.22% to trade at $67.58 a barrel.

 "Crude oil prices rallied as signs of further strength in demand continue to emerge. The emergence of several US cities from lockdown is stoking confidence of stronger demand in gasoline ahead of the key US summer driving season," ANZ Research said in a note.

The renewed optimism ahead of the summer driving season, a period in which gasoline demand is typically at its seasonal peak, is helping to offset concerns over a strong record of daily Covid-19 infections in India, the third latest oil consuming country.

"This renewed optimism is overshadowing headwinds in India, where a second wave of infections of COVID-19 are resulting in new travel restrictions being put in place. Domestic demand has been hit so hard that Indian refiners are now looking to export fuel exports," ANZ added.

As well as hopes for stronger recovery in demand, a fall in the dollar also supported an uptick in oil prices.

Dollar-denominated assets such as oil are sensitive to moves in the dollar – a drop in the dollar makes gold more affordable for holders of foreign currency and thus increases demand for the precious metal.

The upbeat start to the month for U.S. oil prices comes after a 13% rally last month despite lingering concerns over the increase in Iranian production.

Over the weekend, Iran said it expects to export as much as 2.5 million barrels of oil should nuclear deal talks with the U.S. and other nations lead to removal of restrictions against the Islamic Republic.

"If Iranian oil exports, which the country’s vice president estimates at 2.5 million barrels per day, were to return to the market, this would likely put pressure on oil prices," Commerzbank (DE:CBKG) said in note.

Oil Prices Gain on Demand Recovery Bets Ahead of Summer Driving Season
 

Related Articles

Oil prices rise on expected U.S. stocks draw
Oil prices rise on expected U.S. stocks draw By Reuters - Sep 22, 2021

By Dmitry Zhdannikov LONDON (Reuters) -Oil prices climbed more than $1 on Wednesday, extending overnight gains after industry data showed U.S. crude stocks fell more than expected...

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 (2)
santosh kokadiya
santosh kokadiya May 03, 2021 4:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
oil fail yesterday
santosh kokadiya
santosh kokadiya May 03, 2021 4:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
oil fail yesterday
 
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