• Sign up for the Daily Digest E-mail
  • Facebook
  • Twitter
  • LinkedIn

BOE Report

Sign up
  • Home
  • Headlines
    • Latest Headlines
    • Featured Companies
    • Columns
    • Discussions
  • Well Activity
    • Well Licences
    • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts
    • CAOEC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
  • Industry Data
    • Canada Oil Market Data
    • Canada NG Market Data
    • USA Market Data
    • Data Downloads
  • Jobs

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

January 29, 20217:00 AM Reuters0 Comments

Oil pumpjackOil prices were steady 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.

U.S. West Texas Intermediate (WTI) crude futures jumped 7 cents to $52.90 a barrel, after jumping 1.60% on Thursday. 

CL1! chart by TradingView
Brent crude futures rose 35 cents, or 0.63%, to $55.70 a barrel.

“Even the currency effects that have been an occasional driver of the market have dried up with the U.S. dollar also very stable at current levels,” said McCarthy.

Saudi Arabia is set to cut output by 1 million barrels per day (bpd) in February and March, and compliance with output curbs by the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, has improved in January.

The Saudi cut effectively means OPEC+ supply cuts will rise from 7.2 million bpd in January to 8.125 million bpd in February, Commonwealth Bank analyst Vivek Dhar said.

“The OPEC+ production strategy is still working and hopes are high we will get J&J’s vaccine approved sometime next week,” OANDA analyst Edward Moya said in a note.

Johnson & Johnson said on Tuesday it expected to report data on its COVID-19 vaccine early next week.

A 9.9 million barrel drawdown in U.S. oil inventories last week and forecasts for a small drop in U.S. oil production in February are also helping to support the market.

However, market gains have been capped by worries about stalled vaccine rollouts and the spread of contagious new variants of the coronavirus.

Analysts pointed to news of the South African variant reaching the United States, concerns about a flood of new cases in Israel despite its success in vaccinating its population, and vaccine distribution issues in Europe and the United States as discouraging.,,

“Overall, things are looking pretty benign and I wouldn’t be surprised if we see modest amounts of pressure as we head into the U.S. session tonight,” said McCarthy.

Looking ahead, investors may look to China’s manufacturing Purchasing Managers Index (PMI) data for January due to be released on Sunday for direction. 29dk2902l

Follow the BOE Report
  • Facebook
  • Twitter
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • U.S. Gulf Coast crude oil exports to touch record high this quarter
  • G7 seeks to curb Russian oil income through price cap
  • U.S. natgas futures slip 2% to fresh 11-week low on rising output
  • New campaign urges G7 leaders to address energy crisis by telling Canada to step up and develop our resources
  • Prairie Provident announces new board member

Return to Home
Alberta Gas
CAD/GJ
Market Data by TradingView

    Report Error





    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    • Editorial Policy
    Resources
    • App
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contribute
    • Contact
    • Report Error
    Featured In
    • CamTrader
    • Rigger Talk
    Data Partner
    • Foxterra
    BOE Network
    © 2022 Grobes Media Inc.