Skip to content

Oil prices rise as global demand is expected to rise.

AMG Logistics

Despite reports over increasing coronavirus cases and vaccination rollouts, crude oil prices rose on Wednesday as demand estimates were revised higher.

By 8.58 a.m. GMT, Brent crude futures had risen $1, or 1.57 percent, to $64.67 a barrel. WTI crude futures in the United States were up 96 cents, or 1.6 percent, at $61.

“The monthly International Energy Agency (IEA) survey, which forecasts a major increase in global oil demand in the second half of the year, is the key price trigger. According to PVM Oil Associates analyst Tamas Varga, this would boost demand for oil group Opec oil and deplete global and Organisation for Economic Cooperation and Development inventories.

According to the International Energy Agency (IEA), global oil demand and supply would realign in the second half of the year, and suppliers will need to pump an extra 2-million barrels per day (bpd) to satisfy demand.

Similarly, Opec lifted its global demand outlook for 2021 by 70,000 bpd from last month’s estimate, implying that global demand will grow by 5.95 million bpd.

Recent price increases have been supported by signs of a robust economic turnaround in China and the United States, but stalled vaccine rollouts worldwide and rising Covid-19 cases in India and Brazil have delayed the market’s progress.

“Continued delays on vaccination rollouts, as well as global virus cases approaching January’s top, are likely to keep crude’s ascent in check in the short term,” said Vandana Hari, an oil analyst at Vanda Insights.

In recent days, a falling dollar has also “provided a mild upward push,” she added, but there has been “no big bullish impulse to release oil from its limited trading range.”

On Wednesday, the dollar fell to three-week lows, rendering oil cheaper for countries that use other currencies.

In a statement, ING bank said that, in addition to the weakened dollar, Iran’s increased uranium enrichment operation was “also very supportive.” According to the fund, this indicates that the US’s return to the Iran nuclear agreement, as well as some sanctions relief, is still a long way off.

According to sources, crude supplies dropped by 3.6 million barrels in the week ending April 9 according to data from the American Petroleum Institute (API). 

Traders are waiting to see whether official inventory details released by the US Energy Information Administration (EIA) on Wednesday backs up this assessment.

Share this post:

LinkedIn
Facebook
Twitter
Pinterest
Tumblr

AMG Logistics is a Lagos-based TRACE certified logistics company. Our services include Freight forwarding, Customs clearance, Trucking, Distribution, and Warehousing within Nigeria.

CONTACT US

 

Tel: +234 909 199 9866

sales.nigeria@amglogistics.com
+234 909 199 9866

customer.services@amglogistics.com
+234 909 199 9841

cs.abuja@amglogistics.com
+234 909 199 9805

documentation.department@amglogistics.com
+234 909 199 9813

AMG Logistics Locations

HEAD OFFICE
7c Creek Road
Apapa
Lagos

ABUJA BRANCH
B3 ground floor
84 Keane Nkrumah Street
Asokoro Business & Lifestyle centre
Abuja

PORT HARCOURT BRANCH
NAMA Admin Building
Port Harcourt International Airport
Omagwa
River State

LET US CONTACT YOU

CONTACT US NOW