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Oil prices rise on expected economic recovery, likely drawdown in oil stocks

Reuters2021-03-09

  • U.S. 'alarmed' by frequency of attacks on Saudi
  • Yellen says Biden COVID bill to fuel "very strong" U.S. recovery
  • Coming up: API oil inventory data at 2130 GMT

SINGAPORE, March 9 (Reuters) - Oil prices rose on Tuesday on expectations of a recovery in the global economy after U.S. Senate approval of a $1.9 trillion stimulus bill and on a likely drawdown in crude oil inventory in the United States.

But a stronger dollar and receding fears of oil supply disruption from Saudi Arabia after an attack on its oil facilities capped price gains.

Brent crude futures for May rose by 32 cents, or 0.5%, to $68.56 a barrel by 0125 GMT, while U.S. West Texas Intermediate $(WTI)$ crude for April rose 19 cents, or 0.3%, to $65.24.

"Fundamentals remain incredibly supportive, especially with Saudi Arabia in full control pursuing a tight oil policy," Stephen Innes, chief global markets strategist at Axi said in a note.

"Brent is currently holding up above $68, suggesting speculators are likely dipping their toes back in after yesterday's chaos."

On Monday, Brent crude oil price rose above $70 a barrel after Yemen's Houthi forces fired drones and missiles at the heart of the Saudi oil industry, including a Saudi Aramco facility at Ras Tanura vital to petroleum exports.

Riyadh said there were no casualties or loss of property and prices ended the day lower.

Still, the United States expressed alarm at "genuine security threats" to Saudi Arabia from Yemen's Iran-aligned Houthis and elsewhere in the region, and said it would look at improving support for Saudi defences.

The attacks came after the Organization of the Petroleum Exporting Countries, Russia and their oil producing allies, known as OPEC+, agreed last week agree on broadly sticking with output cuts despite rising crude prices.

Investor focus, meanwhile, remains on the prospects for a global economic recovery.

U.S. Treasury Secretary Janet Yellen said on Monday that President Joe Biden's $1.9 trillion coronavirus aid package will provide enough resources to fuel a "very strong" U.S. economic recovery.

U.S. crude oil and refined product stockpiles likely fell last week, with distillate inventories seen drawing down for fifth straight week, a preliminary Reuters poll showed on Monday.

(Reporting by Jessica Jaganathan; editing by Richard Pullin)

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  • darrensohcz
    ·2021-03-09
    Wow
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  • Delvin
    ·2021-03-09
    Nice
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  • TeenPopZ
    ·2021-03-09
    Hi
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  • Potato3
    ·2021-03-09
    Let’s talk chaos theory...
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    收起
    • 2e480c32
      Ok
      2021-03-09
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    • Potato3
      So what else do you think causes this attack?
      2021-03-09
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  • Pangabui
    ·2021-03-09
    [微笑] [微笑] 
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  • nihaomao
    ·2021-03-09
    Wow that’s interesting. Like and comment?
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    • Potato3
      Appreciate the return in favor...
      2021-03-09
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    • 458b6d98
      Need like and comment
      2021-03-09
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  • yinghao94
    ·2021-03-09
    Wowww
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    • MaxLYT
      Nice
      2021-03-09
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  • bullrun
    ·2021-03-09
    Like n comment pla
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    • Jun168
      Ok
      2021-03-09
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    • Jun168
      Reply my comment thanks
      2021-03-09
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    • xoomix
      Oil to the moon. comment n like pls
      2021-03-09
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    查看更多 2 条评论
  • jeremiahlo
    ·2021-03-09
    Like and comment pls :) thanks
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    • bullrun
      👍 like n comment back thx
      2021-03-09
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    • Jun168
      Ok
      2021-03-09
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    • Jun168
      Reply my comment thanks
      2021-03-09
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  • Sebas997
    ·2021-03-09
    like and comment !
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    • bullrun
      👍
      2021-03-09
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  • Haya
    ·2021-03-09
    Add oil!
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  • 新運股
    ·2021-03-09
    Ok
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  • JeremyBucki
    ·2021-03-09
    Hu
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  • PigsMightFly
    ·2021-03-09
    Like and comment thanks!
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    • Xav
      ComMent
      2021-03-09
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  • Foros
    ·2021-03-09
    Nice
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  • Like and comment pls 
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  • Foros
    ·2021-03-09
    Nice
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  • cphoebe
    ·2021-03-09
    Comment
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  • 5a4a94cf
    ·2021-03-09
    Comment
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    • 5a4a94cf
      Comment
      2021-03-09
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    • TanWeiHan
      comment
      2021-03-09
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