Investing.com - Financial Markets Worldwide
💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Oil edges up on U.S., Europe demand growth prospects

Published 05/04/2021, 10:11 AM
Updated 05/04/2021, 10:20 AM
© Reuters.
LCO
-
CL
-

By Sonali Paul
MELBOURNE, May 4 (Reuters) - Oil prices added to overnight
gains on Tuesday, buoyed as more U.S. states eased lockdowns and
the European Union sought to attract more travellers, which
would help offset weakened fuel demand in India as COVID-19
cases soar.
Brent crude LCOc1 futures rose 14 cents, or 0.2%, to
$67.70 a barrel at 0150 GMT, after climbing 1.2% on Monday.
U.S. West Texas Intermediate (WTI) crude CLc1 futures also
rose 14 cents, or 0.2%, to $64.63 a barrel, after gaining 1.4%
on Monday.
Prices are being supported by the prospect of a pick-up in
fuel demand in the United States and Europe, as New York state,
New Jersey and Connecticut were set to ease pandemic curbs and
the European Union planned to open up to more foreign visitors
who have been vaccinated, analysts said.
pnL8N2MQ1MJ
"This should boost holiday travel to coastal regions, as
well as increase mobility in major cities," ANZ Research
analysts said in a note.
For further signs of rising U.S. oil demand, traders will be
watching out for reports on crude and product stockpiles from
the American Petroleum Institute on Tuesday and the U.S. Energy
Information Administration on Wednesday.
Five analysts polled by Reuters estimated on average that
U.S. crude inventories USOILC=ECI fell 2.2 million barrels in
the week to April 30. Oil inventories rose in the previous two
weeks. The rate of refinery utilization USOIRU=ECI was expected
to have increased by 0.5 percentage points last week, from 85.4%
of total capacity in the week ended April 23, according to the
poll.
A weaker dollar, hit by an unexpected slowdown in U.S.
manufacturing growth, also helped shore up oil prices on
Tuesday. The lower dollar makes oil more attractive to buyers
holding other currencies.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.