Oil prices a found support as the approval of a U.S. infrastructure bill boosted optimism over the energy demand outlook. Meanwhile rising COVID-19 cases in Asia have put a modest dampener on the outlook. Indonesia, for example, is battling record-high cases. Malaysia is set to extend a lockdown and Thailand has announced new COVID-related restrictions.The positives driving prices higher are tightening U.S. crude and gasoline supplies, an improving U.S. economy and steadily improving global demand due to vaccine rollouts and the reopening of economies.
Last week’s price surge was fueled by investors impressed by the weekly inventories numbers from the American Petroleum Institute (API) and the Energy Information Administration (EIA). Both showed a draw in crude oil as expected, but the drop in EIA gasoline inventories sent out a signal that demand was healthy. In the EIA report, the drop in crude oil and gasoline stocks confirmed the tight supply.
Meanwhile, strong growth in the United States, Europe and China, bolstered by vaccine rollouts and economies reopening, according to analysts who said this was countered by rising COVID-19 cases and outbreaks in other places.
Last week’s price surge was fueled by investors impressed by the weekly inventories numbers from the American Petroleum Institute (API) and the Energy Information Administration (EIA). Both showed a draw in crude oil as expected, but the drop in EIA gasoline inventories sent out a signal that demand was healthy. In the EIA report, the drop in crude oil and gasoline stocks confirmed the tight supply.
Meanwhile, strong growth in the United States, Europe and China, bolstered by vaccine rollouts and economies reopening, according to analysts who said this was countered by rising COVID-19 cases and outbreaks in other places.