[ad_1]
Oil costs touched multi-month highs on Monday on expectations that OPEC and allied producers might cap output at present ranges in February because the coronavirus pandemic retains worries about first-half demand elevated, Trend stories with regards to Reuters.
Prices rose in keeping with broader monetary markets with Brent crude futures reaching $53.17 a barrel, the very best since March 2020. U.S. West Texas Intermediate crude touched $49.71 a barrel, the very best since February 2020.
March Brent crude futures have been at $52.94 a barrel, up $1.14 or 2.2%, by 0736 GMT whereas February WTI crude futures rose 98 cents, or 2%, to $49.50 a barrel.
Broader macro momentum traits together with a weaker greenback and buyers positioning for a restoration within the oil sector this 12 months may help oil costs, Energy Aspects analyst Virendra Chauhan mentioned.
“Maybe there is some positive sentiment from OPEC+ looking to constrain supply in light of the virus rearing its ugly head in the west,” he added.
Mohammad Barkindo, Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), mentioned on Sunday that whereas crude demand is anticipated to rise by 5.9 million barrels per day (bpd) to 95.9 million bpd this 12 months, the group sees loads of draw back demand dangers within the first half of 2021.
“We are only beginning to emerge from a year of deep investment cuts, huge job losses and the worst crude oil demand destruction on record,” he mentioned.
Prices ended 2020 about 20% under 2019’s common, nonetheless recovering from the impression of worldwide lockdown measures, which have slashed gasoline demand, regardless that the world’s main producers agreed file output cuts.
OPEC and allied producers together with Russia, a grouping referred to as OPEC+, determined final month to boost output by 500,000 barrels per day in January, anticipating a lift in demand, and agreed to satisfy each month to overview manufacturing.
Analysts from Energy Aspects and RBC Capital mentioned OPEC+ was more likely to keep January manufacturing ranges in February.
“We think the producer group will opt to forgo any further production increases for February with COVID-19 cases continuing to climb and the slower-than-expected vaccine rollout,” RBC Capital’s Helima Croft mentioned.
In the United States, crude oil manufacturing stayed beneath strain from weak costs and tepid demand, down greater than 2 million barrels per day (bpd) in October from earlier in 2020, a authorities report confirmed on Jan. 1.
[ad_2]
Source link
