Coronavirus: Oil prices rise on positive forecasts

February 23, 2021
10 Views

Business News of Tuesday, 23 February 2021

Source: reuters.com

Oil prices rose on Tuesday, underpinned by the likely easing of COVID-19 lockdowns around the world Oil prices rose on Tuesday, underpinned by the likely easing of COVID-19 lockdowns around the world

Oil prices rose on Tuesday, underpinned by the likely easing of COVID-19 lockdowns around the world, positive economic forecasts and lower output as U.S. supplies were slow to return after a deep freeze in Texas shut down crude production.

Brent crude was up 36 cents, or 0.5%, at $65.60 a barrel by 1212 GMT, and U.S. crude rose 39 cents, or 0.6%, to $62.09 a barrel.

Both contracts rose more than $1 earlier in the session.

“Vaccine news is helping oil, as the likely removal of mobility restrictions over the coming months on the back of vaccine rollouts should further boost the oil demand and price recovery,” said UBS oil analyst Giovanni Staunovo.

Commerzbank analyst Eugen Weinberg said optimistic oil price forecasts issued by leading U.S. brokers had also contributed to the latest upswing in prices.

Goldman Sachs expects Brent prices to reach $70 per barrel in the second quarter from the $60 it predicted previously, and $75 in the third quarter from $65 forecast earlier.

Morgan Stanley expects Brent crude to climb to $70 in the third quarter.

“New COVID-19 cases are falling fast globally, mobility statistics are bottoming out and are starting to improve, and in non-OECD countries, refineries are already running as hard as before COVID-19,” Morgan Stanley said in a note.

Bank of America said Brent prices could temporarily spike to $70 per barrel in the second quarter.

Disruptions in Texas caused by last week’s winter storm also supported oil prices. Some U.S. shale producers forecast lower oil output in the first quarter.

Stockpiles of U.S. crude oil and refined products likely declined last week, a preliminary Reuters poll showed on Monday.

A weaker dollar also provided some support to oil as crude prices tend to move inversely to the U.S. currency.

You may be interested

Ghana: Third LiPF Launched in Accra
Politics
Politics

Ghana: Third LiPF Launched in Accra

webby - March 4, 2021

The third Livestock, Poultry, Fisheries (LiPF) Training Tradeshow has been launched with a call on the youth to take to…

Old Mutual Bets on African Data Center Growth With Ghana Deal
Politics
Politics

Old Mutual Bets on African Data Center Growth With Ghana Deal

webby - March 4, 2021

(Bloomberg) -- Old Mutual Ltd.’s private equity unit acquired a stake in a second data center in sub-Saharan Africa as…

Ghana: Sharing Space With Mosquitoes – the Woes of Trotro Mates, Drivers and Mechanics
Politics
Politics

Ghana: Sharing Space With Mosquitoes – the Woes of Trotro Mates, Drivers and Mechanics

webby - March 4, 2021

Malaria is still a major public health problem in Ghana even though, the country has seen significant improvement in its…

Leave a Comment

Your email address will not be published.