Commodities
Crude oil prices rally higher following US $1 trillion stimulus plan
Brent crude gained 0.30% to $43.69 as of 8: 20 AM GMT.

Published
7 months agoon

Crude oil recorded gains on Tuesday at London’s trading session, as news about the U.S Congress’ $1 trillion stimulus bill helped to bolster the American dollar and by extension, supported crude oil prices
Brent crude gained 0.30% to $43.69 as of 8: 20 AM GMT, even as West Texas Intermediate also gained 0.24% to $41.71, thereby reversing some losses recorded yesterday.
READ ALSO: Forex inflow in I&E window declines by $2.8 billion as FPIs drop by 97%
Stephen Innes, the Chief Global Market Strategist at AxiCorp, in a note to Nairametrics explained the favorable macros, that will help continue to boost global oil prices in the short term. He said:
“Oil markets are receiving support from expectations of the FOMC’s firmer commitment in the upcoming policy meeting towards allowing above-target inflation to occur for some time, which should be viewed as incredibly positive for risk assets.
“And oil prices will continue to draw support from the Fed’s dovish policy, which sees the US dollar move lower.
READ MORE: Gold loses $70 dollars in an hour after reaching $2,000
“Crude oil continues to sit in narrow well-worn trading ranges as traded volumes fall into the summer. Ultimately something will shake the trees and knock us out of the range trade syndrome.”
However, in order for crude oil prices to break out higher, there must be a significant flattening of COVID-19 caseloads around the world. Still, besides staying nervous over the absolute number of COVID-19 case counts globally, most traders have one eye trained on the US supply, as the first weekly increase in the US rig count could be a sign of things to come.
Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. Follow Olumide on Twitter @tokunboadesina. He is a Member of the Chartered Financial Analyst Society.


Commodities
Oil prices stay on course over successful rollout of COVID-19 vaccines
The British-based oil contract, Brent crude surged by 0.46%, to trade at $62.99 a barrel, up from four days of losses.

Published
1 day agoon
March 3, 2021
Crude oil prices recorded early gains at the third trading session of the week. Oil traders are riding, on high hopes on progress made by COVID-19 vaccine rollouts in the world’s largest economy.
At the time of drafting this report, U.S. West Texas Intermediate (WTI) crude futures gained 0.3%, to $59.93 a barrel, partly recovering from the week losses.
Also the British-based oil contract, Brent crude surged by 0.46%, to trade at $62.99 a barrel, up from four days of losses.
However, it’s fair to say the bulls were not yet in full control as recent price action suggested capped gains.
Some oil pundits anticipate energy demand recovery is on the right track partly to the successful rollouts of COVID-19 vaccines at emerged markets.
That being said, Stephen Innes, Chief Global Market Strategist at Axi in a note to Nairametrics spoke on the rising oil stockpiles at the world’s largest economy, keeping oil bulls far from holding their grip,
“U.S oil stockpiles rose last week and product inventories fell sharply in a cause and effect of the cold snap that forced refiners to shut down Texas operations.
“The unexpectedly large crude inventories build hit at a worrying time for oil bulls. This is particularly significant on the rising possibility that OPEC major oil producers could agree to ease production cuts at a critical meeting this week amid concerns that demand will likely outstrip supply as the global vaccine-led recovery gathers a head of steam,” Innes said.
What to expect: Oil traders are anxiously waiting for Thursday’s OPEC+ meeting. It appears to represent some overdue caution going into the OPEC+ meeting as market participants continue to draw straws and attempt to gauge the likely rise in production.
Commodities
Oil prices plunge on fears OPEC+ may increase Oil supply
Oil traders are becoming wary that OPEC+ will increase oil output and further distort the energy demand/supply dynamics.

Published
2 days agoon
March 2, 2021
Oil prices lost more than a percent at the second trading session of the week. Oil traders are virtually going to extend short on concern that OPEC may agree to increase global supply in a meeting this week and Chinese demand may be dropping.
At the time of writing this report, Brent crude dropped by 1.2%, to trade at $62.91 after losing 1.1% in the past day. U.S. West Texas Intermediate (WTI) crude dropped by 1.2%, to trade at$59.90 a barrel, having lost 1.4% on Monday.
Oil traders are becoming wary that OPEC and its allies, a group often referred to as OPEC+, will increase oil output and further distort the energy demand/supply dynamics.
READ: Oil prices drop, despite strong fuel demand in play
The group meets is scheduled to hold on Thursday as discussions might include allowing as much as 1.5 million barrels per day of crude oil back into the market.
Stephen Innes, Chief Global Market Strategist at Axi in a note to Nairametrics explained why the OPEC+ meeting matters most to many oil traders.
“Constructive oil market fundamentals have blown slightly off course ahead of the OPEC + meeting on Thursday as oil prices took to the plunge pool overnight, with Brent back to the soft US$63 handle after trading as high as $66.82 only last Thursday.
“Commodities were mostly weak overnight as the dollar regained a bit of ground. OPEC+ will meet this Thursday, and expectations are that despite Saudi Arabia’s call for caution, most members will push for an increase in output,” Innes stated.
READ: Oil Price: A dead cat bounce in the making?
Bottom line: energy pundits expect the all-important meeting this week in being one of the most interesting oil meetings in recent times, with Saudi Arabia urging producers to remain “extremely cautious”.
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