Oil prices rose about 1% on Tuesday on strong Chinese import data, but the rally was capped by concerns that pauses on the Johnson & Johnson vaccine could delay economic recovery and limit oil demand growth.
Brent crude oil futures were up 64 cents, or 1%, at $63.91 a barrel, while U.S. crude oil futures settled up 48 cents to $60.18 per barrel.
“We’ve been trading in a range, and need clear demand data and direction on U.S. inventories to break out of this trough,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.
China’s exports grew at a robust pace in March in yet another boost to the nation’s economic recovery, as global demand picked up amid progress in COVID-19 vaccinations. Import growth surged to the highest in four years.
Crude oil imports into China jumped 21% in March from a low base a year earlier as refiners ramped up operations.
The Organization of the Petroleum Exporting Countries in its monthly report on Tuesday raised its forecast for 2021 oil demand growth by 70,000 barrels per day from its previous forecast to 5.95 million bpd, or 6.6%.
Also supporting prices ahead of week data, U.S. crude oil stockpiles were expected to have fallen last week for a third straight week, while distillate and gasoline inventories likely grew, according to analysts in a Reuters poll.
Still, U.S. oil output from seven major shale formations is expected to rise for a third straight month, the U.S. Energy Information Administration said on Monday.
The slow rate of vaccinations in Europe and anticipation of additional supply of oil from Iran in the coming months capped price gains.
Johnson & Johnson said it would delay the rollout of its COVID-19 vaccine in Europe and was reviewing cases of extremely rare blood clots in people after U.S. federal health agencies recommended pausing the use of the vaccine as six women under 50 developed rare blood clots after receiving the shot.
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