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US oil prices hit a peak of $ 60 / barrel due to increased demand

Oil futures rose on Tuesday, with US prices hitting $ 60 a barrel, after OPEC’s monthly report forecast economic activity and oil demand to skyrocket, supported by aid package COVID 1. , US $ 9 trillion and the launch of vaccines, has helped strengthen sentiment towards crude oil. market.

A report on China’s international trade also provides additional evidence that the economic recovery is hurting one of the biggest crude importers.

However, concerns about a slowdown in COVID, incl a call to pause immediately in implementing Johnson & Johnson

single-shot vaccine, has raised some concerns about how quickly the US economy will recover from a pandemic.

Arnim Holzer, correlation and macro protection strategist at EAB Investment Group, said: “The impact of the J&J suspension has yet to be seen clearly in the market article. “This may be because complications of Covid Europe have reduced the price pressure.”

On Tuesday, West Texas Intermediate crude for May delivery
+ 1.07%

+ 1.07%

up 48 cents, or 0.8 percent, to $ 60.18 a barrel on the New York Mercantile Exchange. It was the highest pre-month end of contract since April 1, also the last time the price hit above $ 60, according to Dow Jones Market Data.

June Brent crude oil global benchmark
+ 0.28%

+ 0.28%

up 39 cents, or 0.6 percent, at $ 63.67 a barrel on ICE Futures Europe, which is also at its highest level since early April.

In one monthly report On Tuesday, the Organization of the Petroleum Exporting Countries said it expected consumption of energy products to increase in the second half of 2021, after new coronavirus outbreaks led to an economic recovery. suitable in many parts of the world over the next few months.

“The year begins with new waves of COVID-19 infections, requiring new lockdown measures in many OECD economies. As a result, the majority of consumption growth is expected to take place in Q2 and Q3 of 21, ”the report says.

OPEC has raised its 2021 global oil demand forecast by 100,000 bpd from previous expectations. It expects global oil demand to grow by around 6 million barrels a day to 96.5 million barrels a day this year. OPEC also raised its forecast for global economic growth from 5.1% to 5.4%.

“The incremental revision mainly accounts for a stronger economic recovery than assumed last month… supported by programs to further stimulate and loosen COVID-19 measures, in the midst of Immunization declarations were accelerated, ”the report said.

Oil prices rose early on Tuesday after data show Chinese imports in US dollars, it was up 38.1% in March from a year ago, exceeding the 23.3% increase forecasted by analysts.

Geopolitical tensions also support the value of crude oil. Futures prices ended higher on MondayReports that Iran-backed Houthi rebels in Yemen have attacked an Saudi oil facility have intensified tensions in the oil-rich Middle East.

Weekly US petroleum supplies data from the Energy Information Administration will be released on Wednesday, with most analysts expecting the government agency to report a drop in crude supplies.

On average, analysts forecast crude inventories fell 2.9 million barrels in the week ending April 9, according to a survey conducted by S&P Global Platts. They also forecast gasoline inventories to decrease by 200,000 barrels and distillate supplies to increase by 700,000 barrels.

On Tuesday, May, gasoline Nymex
+ 0.46%

added 0.3% to nearly $ 1.98 / gallon and heating oil in May
+ 0.52%

up 0.4% to about $ 1.82 a gallon.

Maybe natural gas
+ 2.58%

at $ 2.62 per million British thermal units, up 2.3 percent and on the fifth straight track.

Prices are supported by colder-than-normal forecasts in the US East and Midwest and lower natural gas production over the past week, according to Christin Redmond, commodity analyst at Schneider Electric.



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