Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Crude Oil Higher on Growth Signals, Vaccine News

CommoditiesJan 29, 2021 23:38
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse   

Investing.com -- Crude oil prices climbed Friday, helped by signs of a global economic recovery, more positive news of vaccines and ahead of a pending supply cut from Saudi Arabia.

By 10:40 AM ET (1540 GMT), U.S. crude futures were up 1.1% at $52.91 a barrel, while Brent futures were up 1.1% at $55.70 a barrel. 

U.S. Gasoline RBOB Futures were up 2.5% at $1.6141 a gallon.

Earlier Friday, Germany’s gross domestic product actually rose by 0.1% in the fourth quarter, Spanish GDP grew by 0.6% and while French GDP dropped by 1.3%, this was still better than the 4% drop expected.

This followed the U.S. reporting 4.0% annualized growth in the final quarter of 2020 earlier this week, while last week China’s GDP expanded 6.5% in the fourth quarter of 2020. 

Although the Covid-19 virus continues to cause havoc around the world, the economic damage from the second round of lockdowns appears to have not been as bad the first time around.

Additionally, more vaccines are coming onto the market, creating hope that normalcy may be just around the corner. Novavax 's (NASDAQ:NVAX) coronavirus vaccine was 89.3% effective, while Johnson & Johnson's (NYSE:JNJ) one-dose vaccine was 72% effective in the United States, but less potent in other regions.

On the supply side, Saudi Arabia is set to cut output by 1 million barrels per day in February and March, effectively meaning that supply cuts from a group of leading oil producers, known as OPEC+, will rise from 7.2 million barrels a day in January to 8.125 million barrels in February.

That said, these oil gains could face pressure in the future as Saudi Arabia, the world’s largest exporter,  is expected to lower its official selling prices for Asian buyers in March, the first cut in three months, according to a Reuters survey Friday.

In corporate news, Chevron (NYSE:CVX) recorded a surprise loss in the fourth quarter, but the oil major still increased its dividend payout for the 33rd consecutive year.

Traders will now look for the release of the latest U.S. oil and gas rig count from energy services firm Baker Hughes, an early indicator of future output. Last week the total rig count was 373.

Crude Oil Higher on Growth Signals, Vaccine News
 

Related Articles

Oil Cruises to 4th Weekly Gain Despite Risk-Off Friday
Oil Cruises to 4th Weekly Gain Despite Risk-Off Friday By Investing.com - Sep 18, 2021

By Barani Krishnan Investing.com - Oil cruised to a fourth straight weekly gain, riding on the impact of unexpected supply shortages from the three-week old Hurricane Ida, despite...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email