Fri, March 29, 2024

Oil Prices Rose Thanks to Important Factors

Oil

Oil prices jumped on Tuesday, supported by tight supply as well as hopes that rising coronavirus cases and the spread of the Omicron variant will not affect a global demand recovery.

OPEC supply additions are running below their allowed increase as part of a pact with allies as some countries are struggling to increase output. Major economies avoided a return to severe lockdowns, even as coronavirus continues to spread in many countries. 

Covid’s new variant is the dominant strain in Brazil, according to the country’s Health Minister Marcelo Queiroga. He said the government did not expect to see high hospitalization and deaths rates, citing its strong vaccination program. 

Russia’s capital Moscow is ready to mobilize to tackle a “very intense” rise in Omicron cases. The World Health Organization warned against treating Covid as an endemic illness like flu, rather than a pandemic. The Omicron variant continues to spread globally. 

Brent crude added $1.14 or 1.4% to $82.01 a barrel at 11:34 GMT. It dropped 1% in the previous session. U.S. West Texas Intermediate (WTI) gained $1.16 or 1.5% to $79.39. On Monday, WTI fell 0.1%.

Oil prices and producers 

In 2021, Brent gained 50% and rallied further in 2022 as investors see demand rising while OPEC and its allies slowly ease record output cuts made in 2020.

Outages in Libya also helped to boost oil prices. The production increased, but another problem appeared on the horizon. On Tuesday, National Oil Corp said it was suspending exports from Es Sider terminal.

A weaker U.S. currency also helped support oil as it makes oil cheaper for those holding other currencies and tends to reflect a higher investor risk appetite.

Analysts and investors are waiting for the American Petroleum Institute’s (API) report. The API’s report is due at 21:30 GMT. 

YOU MAY ALSO LIKE

Ford

Quick Look: CVA Family Office LLC snaps up 4,559 shares of Ford

The government aspires to make Portugal Europe's top producer of prime lithium for electric car batteries.

Quick Look: Atlas Lithium signs investment and offtake agreements with Mitsui. Mitsui

Stocks and various factors, Baltimore

Quick Look: The Francis Scott Key Bridge in Baltimore collapsed after a

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

Plus500 Expands Office Space in Haifa and Boosts Hiring

Plus500 has significantly expanded its Haifa office space and increased recruitment efforts across various departments. Local news source Walla reports the brokerage has leased an additional 5,800 square meters in the Gev-Yam complex

BROKER NEWS

Stock Report – stock exchange background – WibestBroker

Plus500 Expands Office Space in Haifa and Boosts Hiring

Plus500 has significantly expanded its Haifa office space and increased recruitment efforts across various departments. Local news source Walla reports the brokerage has leased an additional 5,800 square meters in the Gev-Yam complex in