Oil prices ticked up yesterday alongside rising European shares and amid reports of a blast in Saudi Arabia, trading near 11-months highs.
Brent crude was up 43 cents, or 0.8 percent, at $56.31 by 117 GMT, while United States (US), crude oil rose 43 cents, or 0.8 percent, to $53.20. Both contracts rose nearly 1 percent on Monday and are set to post the third monthly rise in a row.
Prices moved up slightly after reports of a blast in the Saudi Arabia capital Riyadh, although the cause remains unclear.
In Europe, gains in financial services and chemical sectors helped stock rise on yesterday. Risk assets such as equities and oil often move in tandem.
On the supply side, the Organisation of Petroleum Exporting Countries and its allies compliance with pledged oil output curbs in averaging 85 percent in January, tankers tracker Petro Logistics said on Monday, The findings sugesst the group has improved compliance supply curb committments.
Also, output from the giant Tengiz field in Kazakhstan was disrupted by a power cut on January 17.
”It appears that market players are cautiously sanguine about the producer group’s market management strategy and therefore about the imminent depletion of inventories,” PVM analysts said.
Dampening bullish statement, United States Democrats are still trying to convince Republican lawmakers of the need for more stimulus, raising questions over when and in what form a package will be approved.
Even as the pace of new infections falls in the US, European nations have set tough restrictions to combat the spread of the coronavirus while vaccines are rolled out.
Source: The Daily Times_January 27, 2021- By Reuters