Due to increased demand and signs of improving economic prospects, oil prices will rise on Tuesday morning, and OPEC+’s opportunity to make more offers and further covid-19 infection control measures are still suppressing the market to a certain extent.
OPEC’s March monthly report will be released later on Tuesday.
According to Reuters, the reason for the price increase was the improvement in export data from China and the heightened tension in the Middle East caused by the Huth attack on the Saudi Aramco factory yesterday. According to Reuters, China’s oil imports in March increased by 21% from the same period last year, due to increased fuel demand and increased activity at refineries.
According to Reuters, Chief Marketing Strategist Stephen Innes told Axi: “These figures show that domestic demand in China is catching up. This may be good news for gasoline demand. Therefore, since its publication, oil prices have It has been rising.”
Platts Energy Information wrote on Tuesday that since last week, oil prices have fluctuated around US$63 per barrel. This is due to differences among investors, who are optimistic about the increase in global oil demand based on the US economic recovery. Emotions and worries about the United States are growing day by day. From May, Opec + will increase its oil supply.
Margaret Yang, a strategist at Daily FX, said on Tuesday: “Oil prices have been stagnant recently because market growth has balanced growth prospects with OPEC+’s increased production in the coming months.”
The U.S. EIA released its monthly “Drilling Productivity Report” on Monday, which indicated that U.S. shale oil production is expected to increase from 13,000 barrels per day in May to 7,613,300 barrels per day. Now, the daily output of shale oil in April is expected to reach 7.6 million barrels per day, higher than the 7.458 million barrels per day in the previous report.
The June Brent crude oil contract was trading at US$63.56 per barrel in early trading on Tuesday, an increase of US$0.28 from the closing price of the previous trading day. In contrast, when the Oslo Stock Exchange closed on Monday afternoon, the contract was trading at approximately $64.24 per barrel.
The WTI May contract was trading at US$59.97 per barrel in early trading on Tuesday, an increase of US$0.27 from the closing price of the previous trading day. In contrast, when the Oslo Stock Exchange closed on Monday afternoon, the contract was trading at approximately $60.72 per barrel.
Now, the price difference between North Sea Brent crude oil delivered in June and West Texas Intermediate crude oil is $3.50 per barrel.