Oil rally extends for 9th day on supply cuts, demand hopes

Reuters2021-02-10

Oil extended its rally for a ninth day on Wednesday, supported by producer supply cuts and hopes that vaccine rollouts will drive a recovery in demand.

The American Petroleum Institute said on Tuesday crude inventories fell by 3.5 million barrels, versus expectations for a 985,000-barrel build. The Energy Information Administration’s offfcial stocks report is due at 1530 GMT. [API/S]

Brent crude was up by 28 cents at $61.37 by 0933 GMT after touching a 13-month high of $61.49 earlier in the session. U.S. crude was up 21 cents to $58.57.

“One can only wonder whether there’s further to go in this week’s rally,” said Stephen Brennock of broker PVM. “However, as things stand, oil has yet to lose its shine.”

Brent has now risen for nine sessions in a row and some analysts say a pullback may be on the cards.

“There is no doubt that oil prices have gone too far and too fast, which means a retracement is certainly due,” said Naeem Aslam, chief market analyst at Avatrade.

Crude has jumped since November as governments kicked off vaccination drives for COVID-19, while putting in place large stimulus packages to boost economic activity and the world’s top producers kept a lid on supply.

Top exporter Saudi Arabia is unilaterally reducing supply in February and March, supplementing cuts agreed by other members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies, known as OPEC+.

Some analysts forecast there will be a supply deficit in 2021 as more people get vaccinated and start going away on trips and working in offices, potentially boosting demand.

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精彩评论

  • Ooi
    2021-02-15
    Ooi
    I believe it can continue bullish in the next 3 months 
    • Hummingbirdx
      It will up toward $100 forcing us to change EV [无语]
    • Ooi
      Yes... almost all U.S. electricity is produced from domestic sources, including coal, nuclear, natural gas, and renewable sources.
  • Angelicious
    2021-02-14
    Angelicious
    Good
  • Nsim
    2021-02-14
    Nsim
    Cheong ah!
  • killuz
    2021-02-14
    killuz
    Cool
  • deeplearning
    2021-02-13
    deeplearning
    Interesting
  • BpchuA
    2021-02-11
    BpchuA
    Coolll
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