Friday 29 January 2021

Oil steady as supply cuts offset demand worries on stalled vaccine rollouts | Reuters

Oil steady as supply cuts offset demand worries on stalled vaccine rollouts | Reuters

Oil prices were slightly lower in subdued trade on Friday, sticking to ranges seen over the past three weeks, as investors looked for signs of changing supply and demand fundamentals.

A cut in Saudi Arabia’s oil supply and lower U.S. oil stocks helped offset price pressures from fuel demand, which is slowing due to stalled vaccine rollouts and contagious new coronavirus strains.

“We’re waiting for the next shoe to drop in the oil market. We really don’t have much to move us around,” said Michael McCarthy, chief strategist at CMC Markets.

Brent crude futures for March slipped 2 cents to $55.51 a barrel at 0743 GMT, standing broadly flat on the day after falling 0.5% in the previous session.

The Brent March contract expires on Friday. The more active April contract was 3 cents, or 0.1%, lower at $55.17.

U.S. West Texas Intermediate (WTI) crude futures fell 23 cents to $52.10 a barrel, after easing 1% on Thursday.

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