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

BOE Report

Sign up
  • Home
  • BOE Intel
  • 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/Data
    • CAOEC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
    • Data
      • Canada Oil Market Data
      • Canada NG Market Data
      • USA Market Data
      • Data Downloads
  • Jobs

Oil rises on demand hopes after days of sell-off

March 3, 20217:45 AM Reuters0 Comments

Oil pumpjackOil prices rose on Wednesday, boosted by demand hopes on progress made in U.S. vaccine rollouts, while uncertainty over how much supply OPEC+ will restore to the market at its Thursday meeting and a big build in U.S. crude stocks capped gains.

U.S. West Texas Intermediate (WTI) crude futures rose $1.34 cents, or 2.25%, to $60.80 a barrel recovering from three days of losses. 

CL1! chart by TradingView
Brent crude futures rose $1.15 cents, or 1.84%, to $63.58 a barrel, up from four days of losses.

Both futures had dipped in Asia’s early morning trading.

Demand recovery hopes thanks to the rollouts of vaccine kept oil prices supported, analysts said.

The U.S. will have enough COVID-19 vaccine for every American adult by the end of May, President Joe Biden said on Tuesday after Merck & Co agreed to make rival Johnson & Johnson’s inoculation.

Meanwhile, the market’s attention is on a forthcoming Thursday meeting by the Organization of the Petroleum Exporting Countries (OPEC) and allies, together called OPEC+, at a time when they are generally positive on the oil market outlook compared with a year ago when they slashed supply to boost prices.

The market widely expects them to ease production cuts, which were the deepest ever, by about 1.5 million barrels per day (bpd), with OPEC’s leader, Saudi Arabia, ending its voluntary production cut of 1 million bpd.

However, a JTC document, seen by Reuters, called “for cautious optimism,” citing “the underlying uncertainties in the physical markets and macro sentiment, including risks from COVID-19 mutations that are still on the rise”.

Reinforcing concerns of potential oversupply, the American Petroleum Institute industry group reported U.S. crude stocks rose by 7.4 million barrels in the week to Feb. 26, in stark contrast to analysts’ estimates for a draw of 928,000 barrels.

“The recent selloff may help reinforce Saudi’s cautious stance and delay any production increase,” said Stephen Innes, global market strategist at Axi.

“It’s probably something that could sway the OPEC+ increase more back toward the 500,000 bpd as opposed to the 1.5 million bpd,” he said. 29dk2902l

Follow BOE Report
  • Facebook
  • Twitter
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • U.S. natgas futures gain 3% on colder forecasts ahead of storage report
  • Oil slips as Russian oil products ban looms
  • Treeline and Tourmaline achieve industry first utilizing DownForce Technology ®
  • Enbridge reports unplanned outage on T-south section of British Columbia natgas line
  • ConocoPhillips reports fourth-quarter, full-year 2022 results and 176% preliminary reserve replacement ratio; announces 2023 guidance and planned return of capital of $11 billion; declares quarterly dividend and variable return of cash distribution

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
    BOE Network
    © 2023 Stack Technologies Ltd.