Oil jumps more than 2% on improving economic outlook
Crude oil prices rose on Thursday as vaccine rollouts bolstered the economic outlook and U.S. fuel stocks fell sharply, although gains were capped by a surge in crude oil inventories after last month’s Texas storm.
Brent crude oil futures for May rose $1.59, or 2.34%, to $69.46 per barrel, while U.S. West Texas Intermediate crude for April settled 2.45%, or $1.58, higher at $66.02 per barrel.
Crude inventories, however, rose by 13.8 million barrels in the week to March 5 to 498.4 million barrels, compared with analysts’ expectations in a Reuters poll for an 816,000-barrel rise, as the nation’s oil industry continued to feel the effects of a winter storm mid-February that stalled refining and forced production shut-ins in Texas.
Globally, stocks also remain ample with crude oil in storage at major land and sea hubs rising last week, according to analysts and ship trackers.
Meanwhile, the U.S. House of Representatives gave final approval on Wednesday to one of the largest economic stimulus measures in American history, a sweeping $1.9 trillion Covid-19 relief bill that gives President Joe Biden his first major victory in office.
Saudi Arabia’s foreign minister on Wednesday said the kingdom would take deterrent action to protect its oil facilities, following attacks by Yemen’s Iran-aligned Houthi movement on energy sites.
Reference: CNBC
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