Global crude oil prices have risen as the rollout of the Covid-19 vaccine have improved global demand expectations.
The US West Texas Intermediate (WTI) crude futures increased $0.18, or 0.3%, to reach $59.93 a barrel while Brent crude futures rose to $62.99 a barrel, an increase of $0.29, or 0.46%, reported Reuters.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Analysts said that demand recovery hopes due to the coronavirus vaccine rollouts supported global oil prices.
US President Joe Biden announced that the Covid-19 vaccine will be made available for every American adult by the end of May.
The announcement comes after pharmaceutical firm Merck & Co agreed to make Johnson & Johnson’s Covid-19 vaccine.
Meanwhile, investors are worried over the meeting by the Organization of the Petroleum Exporting Countries (OPEC) and allies, together called OPEC+, which could result in increased oil supply to the market.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn order to support oil prices, OPEC’s leader Saudi Arabia has made a voluntary production cut of one million barrels of oil equivalent per day (MMbdp).
Axi global market strategist Stephen Innes was cited by the news agency as saying: “The recent selloff may help reinforce Saudi’s cautious stance and delay any production increase.
“It’s probably something that could sway the OPEC+ increase more back toward the 500,000bpd as opposed to the 1.5MMbpd.”
