Oil Holds Gains Near $62 With Investors Assessing Demand Outlook By Bloomberg

© Reuters. Oil Holds Gains Near $62 With Investors Assessing Demand Outlook

(Bloomberg) — Oil was steady at the open of trading in Asia as investors assessed the outlook for demand ahead of a key OPEC+ meeting later this week.

Futures in New York traded near $62 a barrel after rising 1.2% on Friday, the most in more than a week. While the U.S. and China are recovering strongly from the pandemic, the market is facing near-term headwinds from a virus flare-up in India. That could pose a problem for the OPEC+ alliance, which have agreed to start adding more supply from May.

See also: India’s Covid Crisis Threatens a Global Oil Recovery: Julian Lee

Oil’s robust start to the year faltered in mid-March as some regions started to see a virus resurgence, although prices are still up almost 30% in 2021. Despite additional barrels set to hit the market next month, global benchmark is firming in a bullish backwardation structure, signaling tightening supply. OPEC+ is scheduled to hold its meeting on Wednesday.

Another wildcard is the prospect of more crude flows from Iran as the nation seeks to revive a nuclear deal and free itself of U.S. sanctions, but talks are ongoing and progress on a solution remains uncertain.

The prompt timespread for Brent was 68 cents a barrel in backwardation — where near-dated contracts are more expensive than later-dated ones. That compares with 40 cents at the start of April.

Signs of strain on India’s oil refiners are starting to emerge. Mangalore Refinery & Petrochemicals Ltd. has cut processing rates, while Indian Oil Corp. has so far failed to issue an expected tender to purchase West African crude.

©2021 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button