Oil maintains upward momentum but virus concerns cap gains | Reuters
Crude oil climbed on Wednesday after industry data showed U.S. inventories declined more than expected and OPEC raised its outlook for oil demand, but gains were capped by worries about the coronavirus and by rising supplies.
Brent crude futures rose 85 cents, or 1.3%, to $64.52 a barrel by 0619 GMT, after gaining 39 cents on Tuesday.
U.S. West Texas Intermediate (WTI) crude futures added 82 cents, or 1.4%, to $61 a barrel, following Tuesday’s rise of 48 cents.
Signs of a strong economic recovery in China and the United States have underpinned recent price gains, but concerns over stalled vaccine rollouts worldwide and soaring COVID-19 infections in India and Brazil have slowed the market’s advance.
“Continuing setbacks on vaccine rollouts and global cases nearing January’s peak is likely to hold a firm cap on crude’s ascent in the short term. At the same time, persistent optimism over a U.S. recovery and the world being on the cusp of emerging out of the COVID crisis is holding a floor,” said Vandana Hari, energy analyst at Vanda Insights.
No comments:
Post a Comment