Oil rises over 1% as demand hopes bolster sentiment
Oil rose more than 1% on Monday as Chinese economic figures and US vaccination rate pointed to a strong rebound in demand in the world's two largest economies.
Investors remain wary, however, over record-breaking infection rates in India, the third-largest fuel importer worldwide, along with higher OPEC+ oil supply.
Brent crude rose 74 cents, or 1.1%, to $67.50 a barrel by 1:30 p.m. EDT (1730 GMT). US West Texas Intermediate rose 80 cents, or 1.3%, to $64.38 a barrel.
The United States and China, the world's top two oil consumers, are expected to drive a recovery in demand from the coronavirus pandemic.
“Even as COVID-19 cases hit record levels this week, oil prices have moved higher on growing vaccination numbers in developed markets,” a BofA Global Research report said. “Recent data points to the high effectiveness of vaccines at preventing infections and fatalities.”
About a third of US residents have been fully vaccinated, Reuters' coronavirus tracker showed.
Meanwhile, Chinese crude imports averaged a seasonal record in February and March from increased car sales, a recovery in local travel and a strong industrial backdrop, BofA Global Research said.
Still, parts of the world such as India are seeing rising coronavirus cases. India on Monday reported more than 300,000 new coronavirus cases for a 12th straight day. The new wave of the virus has already led to a drop in fuel sales in April.
“India jitters are currently stopping oil prices from rising further,” said Rystad Energy analyst Louise Dickson.
Brent has rallied almost 30% this year, recovering from last year's historic lows thanks to record supply cuts by the Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+.
However, OPEC+ decided last week to stick to a plan to boost supply slightly from May 1 and OPEC's production climbed in April, led by a boost from Iran, a Reuters survey found.
Tehran and world powers are holding talks to revive the 2015 nuclear deal that could add to global oil supplies should an agreement be reached. Iran's chief nuclear negotiator on Saturday said that Tehran expects US sanctions on oil, banks and most individuals and institutions to be lifted.
(Source: Reuters)
Crude prices fall on possible ceasefire in Lebanon
Breaking up Google an option being considered by US, report shows
Boycott on Israel helped Arabs revive their economies: Analysis
Israel launches air strikes on Syria-Lebanon border crossing
Russia: Comprehensive deal with Iran will include defense, security ties
VIDEO | Israeli embassy shooting in Jordan leaves gunman dead, 3 police injured
VIDEO | Paris march in support of Palestine women
VIDEO | ICC issues arrest warrants for Israeli prime minister, ousted regime war minister
120 Palestinians perish as Israeli war machine keeps ravaging Gaza
VIDEO | Struggles of Palestinian women amidst war, displacement
VIDEO | Hezbollah rains attack drones down on elite Israeli brigade
PressTV NEWSLETTER
now
This makes it easy to access the Press TV website
