Oil prices rise to near 1-year highs as vaccines, stimulus and Saudi Arabian production cuts lift the energy outlook
- Brent and
WTI crudeoil prices rose on Wednesday, approaching 1-year highs as investors bet stimulusand vaccines would fuel an economic recovery.
- Saudi Arabia's
oiloutput cuts also lifted sentiment, while data showed a bigger-than-expected drop in US inventories.
- Analysts said 2021 is set to see a solid recovery in oil prices, as businesses reopen and global trade and travel resume.
Oil prices rose on Wednesday to close to 1-year highs, as data hinted at stronger demand, while more stimulus and production cuts brightened the outlook.
Brent crude - the international benchmark price - climbed 0.1% to $56.65 a barrel at 6.15am ET, having earlier risen above $57, its highest level since February. US WTI crude rose 0.28% hit trade at around its highest levels since February, at $53.38.Both prices have climbed sharply in 2021 already, with
Saudi Arabia's pledge to cut output by 1 million barrels per day in February and March has also put a floor under oil prices.The Gulf state has already cut supplies of crude oil for February for some Asian buyers, according to refinery and trade sources who spoke to Reuters. Meanwhile, data from the American Petroleum Institute on Tuesday suggested that demand was buoyant. Oil stocks dropped by 5.8 million barrels last week, according to API. Analysts had expected a fall of 2.3 million barrels, according to a Reuters poll.
"Crude oil has been on a tear," said Marios Hadjikyriacos, investment analyst at trading platform XM.
"It seems that the promises of a US spending extravaganza and
"At the same time, the continuation of OPEC+ production cuts along with low levels of investment last year, particularly in the US, should mean that global supply remains constrained."
- IMF projects 11.5% growth rate for India in 2021, only major economy to record double digit growth
- Connaught Place to remain shut as farmers' tractor parade turns violent
- After violent clashes with police, farmers swarm Red Fort
- DMRC closed entry and exit gates of yellow, green, violet and blue lines in surge of farmers protest
- Delhi Police fires tear-gas shells on farmers near Akshardham temple and Sanjay Gandhi Transport Nagar