Analysts expressed concern that discontinuing the Johnson & Johnson vaccine supply could delay economic recovery and curb oil demand growth.
Oil prices stabilized higher on Tuesday due to strong Chinese import data, but gains were limited by fears that discontinuing Johnson & Johnson vaccines could delay economic recovery and drought. Increasing oil demand growth.
Global benchmark Brent crude rose 39 cents, or 0.6%, at $ 63.67 / barrel, while US West Texas Intermediate futures rose 48 cents, or 0, 8%, to 60.18 USD / barrel. Both contracts recorded changes of less than 1% for five consecutive sessions.
Phil Flynn, senior analyst at Price Futures Group in Chicago, said: “We are trading within a range and need clear demand and US inventory direction to get out of the bottom. this “.
China’s exports surged at a strong pace in March, simultaneously being another driver of the nation’s economic recovery, as global demand increased amid progress in COVID vaccination. -19. Import growth increased at the highest rate in 4 years.
Crude oil imports into China rose 21% in March from a year-earlier low as refiners stepped up operations.
The Organization of Petroleum Exporting Countries in its monthly report raised its forecast for oil demand in 2021 to increase 70,000 barrels / day from the previous forecast to 5.95 million barrels / day, or 6.6%.
Also supporting prices ahead of weekly data, US crude inventories are expected to have fallen last week for the third straight week, while distillate and gasoline inventories may rise, according to analysts. in a Reuters news poll.
However, US oil production from seven major shale systems is expected to increase for the third month in a row, the US Energy Information Administration said on Monday.
Slow vaccination rates in Europe and projections of additional oil supplies from Iran in the coming months have constrained price hikes.
Johnson & Johnson said it will delay the rollout of its COVID-19 vaccine in Europe and is reviewing extremely rare human clotting cases after U.S. federal health authorities recommend. Vaccine discontinuation was discontinued due to six women under 50 years of age developing rare blood clots after receiving the shot.
Yemen’s Iran-linked Houthi movement on Monday said it had fired 17 drones and two ballistic missiles at targets in Saudi Arabia, including Saudi Aramco facilities in Jubail and Jeddah.
Meanwhile, Tehran said Sunday’s blast at its key nuclear site was an act of sabotage by its archenemy Israel and vowed revenge.
“The increase in geopolitical tension will only have a significant increase in oil prices if it is accompanied by the actual material supply disruption,” PVM analysts said.