Business Oil prices rose on Tuesday on expectations of a recovery in the global economy after U.S. Senate approval of a US$1.9 trillion stimulus bill and on a likely drawdown in crude oil inventory in the United States.
FILE PHOTO: The chimneys of the Total Grandpuits oil refinery are seen just after sunset, southeast of Paris, France, March 1, 2021. REUTERS/Christian Hartmann
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LONDON: Oil prices rose towards US$69 a barrel on Tuesday as investors focused on prospects for tighter supply due to extended OPEC+ output curbs and amid growing hopes of a recovery in demand.
Crude it its highest level since the start of the pandemic on Monday after Yemen's Houthi forces fired drones and missiles at Saudi oil sites on Sunday. Saudi Arabia said it thwarted the strike and prices slipped as supply fears eased.
Advertisement Advertisement Brent crude rose 51 cents, or 0.8per cent, to US$68.75 by 0920 GMT, after trading as low as US$67.61. U.S. West Texas Intermediate (WTI) crude added 34 cents to US$65.39.
"Dips have been lately viewed as buying opportunities," said Tamas Varga of broker PVM. "Last week's OPEC+ meeting will ensure that the global oil balance will get tighter in the foreseeable future."
On Monday, Brent rose to US$71.38, its highest since Jan. 8, 2020 and U.S. crude hit US$67.98, the highest since October 2018.
"With a structural undersupply in the physical market now, any dips in oil prices are likely to attract physical buyers' attention," said Jeffrey Halley of broker OANDA.
Advertisement Advertisement Prices also rose on expectations of economic recovery after the U.S. Senate approved a US$1.9 trillion stimulus package, outweighing a stronger U.S. dollar, which tends to crimp investor demand for commodities.
U.S. Treasury Secretary Janet Yellen said on Monday the aid package would provide enough resources to fuel a "very strong" U.S. economic recovery. The U.S. House of Representatives must still approve it.
On Thursday, the Organization of the Petroleum Exporting Countries (OPEC), Russia and allies, known as OPEC+, decided to broadly stick to output cuts, sparking a further rally.
In another development that would support prices, U.S. crude stockpiles are expected to drop. The first of this week's reports, from the American Petroleum Institute, is out at 2130 GMT.
(Additional reporting by Jessica Jaganathan; Editing by Edmund Blair)
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09 Mar 2021 05:45PM [h=2]Share this content[/h]
[h=2]Bookmark[/h]
LONDON: Oil prices rose towards US$69 a barrel on Tuesday as investors focused on prospects for tighter supply due to extended OPEC+ output curbs and amid growing hopes of a recovery in demand.
Crude it its highest level since the start of the pandemic on Monday after Yemen's Houthi forces fired drones and missiles at Saudi oil sites on Sunday. Saudi Arabia said it thwarted the strike and prices slipped as supply fears eased.
Advertisement Advertisement Brent crude rose 51 cents, or 0.8per cent, to US$68.75 by 0920 GMT, after trading as low as US$67.61. U.S. West Texas Intermediate (WTI) crude added 34 cents to US$65.39.
"Dips have been lately viewed as buying opportunities," said Tamas Varga of broker PVM. "Last week's OPEC+ meeting will ensure that the global oil balance will get tighter in the foreseeable future."
On Monday, Brent rose to US$71.38, its highest since Jan. 8, 2020 and U.S. crude hit US$67.98, the highest since October 2018.
"With a structural undersupply in the physical market now, any dips in oil prices are likely to attract physical buyers' attention," said Jeffrey Halley of broker OANDA.
Advertisement Advertisement Prices also rose on expectations of economic recovery after the U.S. Senate approved a US$1.9 trillion stimulus package, outweighing a stronger U.S. dollar, which tends to crimp investor demand for commodities.
U.S. Treasury Secretary Janet Yellen said on Monday the aid package would provide enough resources to fuel a "very strong" U.S. economic recovery. The U.S. House of Representatives must still approve it.
On Thursday, the Organization of the Petroleum Exporting Countries (OPEC), Russia and allies, known as OPEC+, decided to broadly stick to output cuts, sparking a further rally.
In another development that would support prices, U.S. crude stockpiles are expected to drop. The first of this week's reports, from the American Petroleum Institute, is out at 2130 GMT.
(Additional reporting by Jessica Jaganathan; Editing by Edmund Blair)
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