Oil prices rose on Monday amid optimism over China’s demand recovery, concerns that underinvestment will crimp future oil supply and as major producers keep output limits in place.
Brent crude rose 47 cents, or 0.6%, to $83.47 a barrel by 0445 GMT. U.S. West Texas Intermediate (WTI) crude for March, which expires on Tuesday, was at $76.78 a barrel, up 44 cents or 0.6%. The more active April contract was up 0.5% at $76.90.
The benchmarks settled down $2 a barrel on Friday, and closed lower by about 4% last week after the United States reported higher crude and gasoline inventories.
“Brent and WTI prices are up slightly this morning after selling off on recent hawkish Fed commentary, following stronger than expected CPI and PPI data released in the U.S.,” said Baden Moore, head of commodities research at National Australia Bank.
While last week’s announcement that the U.S. will sell 26 million barrels of crude oil from its Strategic Petroleum Reserves adds some downward pressure to the market, global supply looks to be “flat to down” versus the previous corresponding period after factoring in production cuts by Russia and OPEC+, added Moore.
This report’s information was first seen on REUTERS; to read more, click this link.
You must be logged in to post a comment.