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The Vopak oil storage terminal in Johor, Malaysia. Picture: REUTERS/HENNING GLOYSTEIN
Melbourne — Oil prices were steady on Tuesday with investors betting tight supply and rising vaccination rates will help offset any impact on demand due to surging Covid-19 cases worldwide.
Brent crude futures climbed 13c, or 0.2%, to $74.63 a barrel at 1.28am GMT, extending a 0.5% gain on Monday.
US West Texas Intermediate (WTI) crude futures rose 4c to $71.95 a barrel, after losing 16c on Monday.
Benchmark prices rose even after the US issued travel warnings to Spain and Portugal due to rising Covid-19 cases and a White House official said wider travel curbs will not be lifted due to the highly infectious Delta variant and rising domestic infections.
In one encouraging sign, Britain reported its lowest daily total of new Covid-19 cases since July 4 on Monday, suggesting the surge in infections has passed its peak. Analysts tracking mobility data remain confident about fuel demand, counting on vaccinations to guard against strict new lockdowns.
Global oil markets are expected to remain in deficit despite a decision by oil cartel Opec and its allies, collectively known as Opec+, to raise production through the rest of the year.
ANZ Research analysts said “robust road traffic data across most major regions suggests rising infections are having minimal impact”.
“Investors are also encouraged by the continued restraint by US shale oil producers. So far they have maintained discipline, with a focus on returns rather than growth,” ANZ Research analysts said in a note.
Investors are awaiting inventory data from the American Petroleum Institute industry group on Tuesday and the US energy information administration on Wednesday for further evidence that demand is holding up.
Five analysts polled by Reuters estimated, on average, that US crude stocks fell by about 3.4-million barrels and petrol stocks fell by 400,000 barrels in the week to July 23.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Oil inches up on tight supply
Melbourne — Oil prices were steady on Tuesday with investors betting tight supply and rising vaccination rates will help offset any impact on demand due to surging Covid-19 cases worldwide.
Brent crude futures climbed 13c, or 0.2%, to $74.63 a barrel at 1.28am GMT, extending a 0.5% gain on Monday.
US West Texas Intermediate (WTI) crude futures rose 4c to $71.95 a barrel, after losing 16c on Monday.
Benchmark prices rose even after the US issued travel warnings to Spain and Portugal due to rising Covid-19 cases and a White House official said wider travel curbs will not be lifted due to the highly infectious Delta variant and rising domestic infections.
In one encouraging sign, Britain reported its lowest daily total of new Covid-19 cases since July 4 on Monday, suggesting the surge in infections has passed its peak. Analysts tracking mobility data remain confident about fuel demand, counting on vaccinations to guard against strict new lockdowns.
Global oil markets are expected to remain in deficit despite a decision by oil cartel Opec and its allies, collectively known as Opec+, to raise production through the rest of the year.
ANZ Research analysts said “robust road traffic data across most major regions suggests rising infections are having minimal impact”.
“Investors are also encouraged by the continued restraint by US shale oil producers. So far they have maintained discipline, with a focus on returns rather than growth,” ANZ Research analysts said in a note.
Investors are awaiting inventory data from the American Petroleum Institute industry group on Tuesday and the US energy information administration on Wednesday for further evidence that demand is holding up.
Five analysts polled by Reuters estimated, on average, that US crude stocks fell by about 3.4-million barrels and petrol stocks fell by 400,000 barrels in the week to July 23.
Reuters
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