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Oil edges lower near $61 with near-term demand concerns in focus

Whereas oil’s sustained advance this 12 months stalled not too long ago, there may be confidence within the longer-term outlook as Covid-19 vaccinations are rolled out worldwide and because the US unleashes vital stimulus.

Bloomberg

PUBLISHED ON MAR 23, 2021 05:58 AM IST

Oil edged decrease in Asian buying and selling on considerations concerning the near-term demand outlook amid the uneven restoration from the pandemic.

Futures in New York slipped 0.6% to commerce close to $61 a barrel after two days of positive factors. Gasoline consumption is going through a setback after some nations in Europe prolonged or reimposed lockdowns, whereas within the US, New York Metropolis’s mayor urged a pause on reopening. In Southeast Asia, demand has hit a plateau and is unlikely to achieve pre-virus ranges till the tip of the 12 months or later.

US crude stockpiles, in the meantime, in all probability expanded by 1.2 million barrels final week, in line with the median estimate in a Bloomberg survey. If confirmed by authorities information on Wednesday, it could be a fifth weekly improve, the longest run of positive factors since Might. Trade figures are due later Tuesday.

Whereas oil’s sustained advance this 12 months stalled not too long ago, there may be confidence within the longer-term outlook as Covid-19 vaccinations are rolled out worldwide and because the US unleashes vital stimulus. OPEC+ members are persevering with to place a ground underneath costs via a sequence of output cuts, with the group scheduled to fulfill subsequent week to find out manufacturing coverage for Might.

See additionally: Saudi Arabia Proposes Yemen Peace Plan Amid Oil Assaults

The immediate timespread for Brent was 6 cents a barrel in backwardation — a bullish construction the place near-dated contracts are dearer than later-dated ones. That compares with 67 cents firstly of the month.

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