28.1 C
Delhi
September 27, 2022
Charis Journal

As coronavirus fears linger, Oil reaches one-week high on stimulus talk

linger

Crude oil rose to the highest in more than a week in New York and London on optimism that a deal could still be struck for a fresh round of stimulus spending before the election.

The market also drew some support from US stocks which rallied after four weeks of declines, as well as a weaker dollar which makes commodities priced in the greenback more attractive. Yet concerns over the pandemic haven’t gone away and gains were limited by the prospect of renewed lockdown measures to combat the virus.

“The extent to which there’s hope in the market for a deal, that’s trickling through to the petroleum complex,” said John Kilduff, a partner at Again Capital LLC. “It should help demand here.”

Oil’s recovery from an unprecedented crash earlier this year has slowed with signs of a resurgent pandemic. Global Covid-19 cases topped 33 million as New York is seeing an uptick in cases and a UK health minister refused to rule out more restrictions. On the stimulus front, House Speaker Nancy Pelosi held out the prospect that a deal could still get done, even though she said the White House will have to agree to “much more” spending.

“A weaker dollar, a boost in U.S. equities, thoughts that there might be a deal, those are all positive things behind crude oil,” said Phil Streible, chief market strategist at Blue Line Futures LLC in Chicago. Still, “some kind of uptick in demand is needed.”

Supply concerns have also been weighing on the outlook for crude prices. JPMorgan analysts warned against adding oil to the market, as Libya production returns and the OPEC+ alliance looks to its next round of tapering output cuts.

Vitol’s executive committee member, Chris Bake, also said the global refining market is “incredibly squeezed” and is contending with large stockpiles, a sentiment echoed by Socar Trading CEO Mariam Almaszade. Oil demand has become more “uncertain,” Bake said on a conference call hosted by Dubai consultant Gulf Intelligence.

The weakness in refining margins is one of the factors weighing on Brent’s pricing against other grades. The global benchmark has slipped to a discount to the Middle Eastern Dubai marker in recent weeks as an oversupply in Europe and weak refining margins push some grades into floating storage.

The physical market for actual barrels of crude is displaying some signs of strength. Mars Blend, a high-sulfur crude, rose on Monday to its highest premium to Nymex oil futures in more a week. Meanwhile, Poseidon crude is at its highest premium to WTI futures in more than two weeks.

Related News

16 comments

ivermectin tablet 1mg February 23, 2022 at 6:00 PM

ivermectin 12 mg tablets for humans for sale

ivermectin 3mg tabs

Reply
ivermectin 3 mg online February 26, 2022 at 6:07 AM

ivermectin topical

ivermectin brand

Reply
ivermectin without prescription March 1, 2022 at 10:43 AM

ivermectin 3mg cost

get ivermectin

Reply
ivermectin 6 mg tabs March 2, 2022 at 4:47 AM

ivermectin 6 mg otc

ivermectin 6 mg tablets

Reply
ivermectin 12mg tabs March 5, 2022 at 2:49 AM

buy ivermectin online

buy ivermectin 6 mg

Reply
ivermectin ebay March 10, 2022 at 7:36 AM

order ivermectin 6 mg online

ivermectin 6 mg

Reply
ivermectin 0.08 oral solution March 10, 2022 at 8:55 AM

buy ivermectin 3 mg online

ivermectin 3mg for sale

Reply
does cialis lose effectiveness over time March 24, 2022 at 10:53 AM

buying cialis online safely

viagra cialis

Reply
boris johnson hydroxychloroquine April 1, 2022 at 10:29 AM

hydroxychloroquine 200 mg

hydroxychloroquine homemade

Reply
cialis over counter walmart April 12, 2022 at 4:04 PM

generic cialis at walmart

cialis over the counter

Reply
stromectol without a doctor prescription June 30, 2022 at 11:23 PM

buy stromectol for sale

stromectol 6 mg for sale

Reply
stromectol india July 16, 2022 at 5:28 AM

cost of stromectol

stromectol 12mg tabs

Reply
cheap generic cialis July 21, 2022 at 12:22 PM

cialis for bph

daily cialis

Reply
how much is cialis at walmart July 26, 2022 at 5:35 AM

generic cialis at walmart pharmacy

cialis price walgreens settings – cialis dosage 30 mg yabb – does cialis work for everyone guestbook.htm

Reply
how long does it take for cialis to work August 2, 2022 at 3:47 PM

difference between viagra and cialis

cialis new zealand – cialis and quinine – cialis 20mg canada topics

Reply
buy stromectol 6mg for humans September 12, 2022 at 3:28 PM

stromectol 3mg over the counter

stromectol 12mg tabs

Reply

Leave a Comment