Oil continues upward momentum but coronavirus worries cap gains

14.04.2021 - Davydova Maria
Oil continues upward momentum but coronavirus worries cap gains

Crude oil prices rose on Wednesday after U.S. oil inventories data fell more than expected and OPEC raised its oil demand outlook. However, fears about a surge in COVID-19 infections and rising supplies capped gains. 

Brent crude futures gained 0.6%, or 42 cents, at $64.09 per barrel after climbing 39 cents on Tuesday. U.S. West Texas Intermediate crude futures rose 0.7%, or 40 cents, at $60.58 per barrel, following a 48-cent rise on Tuesday.

Signs of strong U.S. and Chinese economic recoveries supported recent price gains. However, worries over stalled vaccine rollouts globally and a surge in COVID-19 cases in India and Brazil capped gains.

OPEC raised its forecast for global oil demand for 2021 on Tuesday. The organization is expecting demand to climb by 5.95 million bpd in 2021, up by 70,000 bpd from its forecast last month. 

Further supporting the market on Wednesday, API data is likely to show that crude stocks dropped by 3.6 million barrels in the week ended April 9, compared with expectations for a 2.9 million barrel drawdown. 

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.net or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?