View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
March 3, 2021updated 27 Oct 2021 10:13am

Oil prices gains as vaccine rollout boost global demand outlooks

Global crude oil prices have risen as the rollout of the Covid-19 vaccine have improved global demand expectations.

By Umesh Ellichipuram

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.

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.

In 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.”

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Offshore Technology