• 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 rebounds on robust economic data, bargain hunting

April 6, 20217:58 AM Reuters0 Comments

Sask oil pumpjack

Oil prices rose on Tuesday as investors looked for bargains following the previous day’s plunge of more than 4% on rising output from OPEC+ while strong economic data from the United States and China brightened recovery prospects.

U.S. West Texas Intermediate (WTI) crude futures rose $1.44, or 2.47%, to $60.24 barrel, after sliding 4.6% on Monday.

CL1! chart by TradingView
Brent crude futures rose $1.38, or 2.22%, to $63.66 a barrel, after falling 4.2% on Monday.

Market sentiment was buoyed by a survey from the Institute for Supply Management (ISM) on Monday showing activity in the U.S. services industry reached its highest level on record in March. The data came after a jobs report on Friday beat forecasts with 916,000 added to the U.S. economy last month.

The U.S. data “underscored growth momentum in the world’s largest economy, brightening the energy demand outlook,” said DailyFX strategist Margaret Yang.

Adding to positive sentiment, a recovery in China’s services sector picked up speed in March as firms hired more workers and business optimism surged, a private sector survey showed on Tuesday.

In addition, England is set to ease coronavirus pandemic restrictions on April 12, with the opening of businesses including all shops, gyms, hair salons, and outdoor hospitality areas.

Those helped offset worries about the agreement last week by the Organization of the Petroleum Exporting Countries (OPEC) and allies, known as OPEC+, to bring back 350,000 barrels per day (bpd) of supply in May, another 350,000 bpd in June and a further 400,000 bpd or so in July.

Saudi Arabia is also set to phase out its extra voluntary cut of 1 million bpd over those three months. At the same time OPEC member Iran, exempt from making voluntary cuts, is boosting supply.

The market’s attention is now on indirect talks between the United States and Iran in Vienna from Tuesday as part of broader negotiations to revive the 2015 nuclear deal between Tehran and global powers.

The U.S. expected the talks to be “difficult” and does not foresee any early breakthrough.

“A breakthrough in the U.S.-Iran indirect talks in Vienna this week will almost certainly lead to another decisive move lower by oil markets, as fears of more Iranian supply increase,” said Jeffrey Halley, a senior Asia Pacific market analyst at OANDA. 29dk2902l

Follow the BOE Report
  • Facebook
  • Twitter
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • Canada’s weekly rig count up 15 to 175
  • U.S. drillers add oil and gas rigs for a record 23 months
  • U.S. natgas futures hold near 11-week low as LNG exports decline
  • No plans for extraordinary EU summit on gas prices in July
  • Oil prices rise on tight supply, inventory uncertainty

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.