London / 19.01.2021 07:43:45
Oil prices rose on optimism that government stimulus will boost economic growth in the world, so confidence in higher demand overcame concerns that new lockdowns from the SARS-CoV-2 coronavirus pandemic causing the disease covid-19, They are cooling fuel consumption.
Crude futures Brent for March they rose 46 cents to 55.21 dollars per barrel, after having fallen 35 cents in the previous session.
The crude West Texas Intermediate it was up 4 cents to $ 52.40. The contract was not listed yesterday as the US markets were closed for a holiday. WTI February futures expire on Wednesday.
Investors are optimistic about demand in China, the world’s top oil importer, following data released yesterday that showed production from its refineries rose 3 percent to a record high in 2020. China also avoided an economic downturn last year.
The market is also keeping an eye on the API industry association oil inventory data, which is expected tomorrow.
In addition, tomorrow the inauguration speech of the president-elect of United States, Joe Biden, will likely give details on the $ 1.9 trillion aid package.
Covid-19 resurgence slows oil demand rebound: IEA
The recovery in oil demand will be affected by an increase in new cases of coronavirus before the launch of vaccines and stimulus measures help economies in the second half of the year, according to the International Energy Agency (IEA).
« Border closures, social distancing measures and lockdowns … will continue to limit the demand for fuel until vaccines are more widely distributed, most likely only for the second half of the year, » the IEA said in its monthly report.
« This recovery will be mainly due to the impact of the fiscal and monetary support packages, as well as the effectiveness of the steps to resolve the pandemic, » the IEA said.
Noting that the improvement in global oil demand reversed in December, the Paris-based watchdog lowered its forecast for the first quarter by 580,000 barrels per day (bpd) and its forecast for 2021 by 300,000 bpd.
Supply and demand are on track to recover this year, and efforts by major producers to balance the market by slowing production are helping to reduce oil reserves around the world.
However, due to the expected increase in the second half of the year, « it is likely that much more oil will be needed. »
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