Covid-19 vaccine breakthroughs and a recent pledge by Saudi Arabia to deepen output cuts have driven oil 50% higher since the end of October. Commodities are showing all the signs of a structural bull market, and OPEC said in its monthly report on Thursday that the group was on track to deplete the world’s bloated crude inventories. WTI is $52.74
Asian utilities are snapping up prompt supplies of fuel oil -- an emergency backstop for natural gas -- as power demand surges across the region due to a winter freeze. WTI is $52.76; Brent is $55.82
Saudi Arabia’s move to sell less oil comes amid an overall decline in crude demand across Asia due to peak refinery maintenance season from March to April. Separately, the resurgence of Covid-19 infections across Asia and Europe, and the declaration of a state of emergency in parts of Japan and Malaysia are also reducing fuel consumption and keeping refinery run rates at low levels. WTI is $53.40; Brent is $56.70
Oil prices are rising again after a brief timeout. On the demand side, hopes of economic recovery and the massive fiscal stimuli being taken by governments are lending support. WTI is $52.98; Brent is $56.44
Oil has surged about 45% since the end of October after a series of Covid-19 vaccine breakthroughs raised expectations for a sustained rebound in fuel consumption, even though the rollout of shots will probably take some time. The broader commodity market is seeing renewed confidence from investors, with record wagers that oil, crops, and metals are set to gain. WTI is $51.83; Brent is $55.30
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