By Dhirendra Tripathi
Investing -- Shares of energy majors were trading higher in Tuesday’s premarket, as indications of an accelerating economic recovery in large economies propelled oil prices beyond $70 a barrel ahead of a crucial OPEC+ meeting.
Exxon Mobil (NYSE: XOM ), Chevron (NYSE: CVX ), Marathon Petroleum (NYSE: MPC ), BP (NYSE: BP ) and Royal Dutch Shell (NYSE: RDSa ) were all up 1.5%-2% as the latest data from Europe and China pointed to a strong economic recovery.
China’s May factory activity growth, at 52 as per National Bureau of Statistics, was its fastest in 2021 so far.
Eurozone manufacturing activity too expanded at a record pace in May, as IHS Markit's final Manufacturing Purchasing Managers' Index rose to 63.1 in May from April's 62.9, the highest reading since the survey began in June 1997.
It suggests economic recovery in the world’s largest consumers of oil is well on track.
The Organization of the Petroleum Exporting Countries and its allies like Russia and Malaysia, a grouping known as OPEC+, will meet later in the day. The cartel is expected to continue with its policy of gradually easing fuel supply curbs.
OPEC+ decided in April to return 2.1 million barrels per day of supply to the market from May to July, and the group’s Joint Technical Committee has forecast that stockpiles will fall by at least 2 million barrels a day from September through December.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Meaning tomorrow the share price of the oil will be increased.Like 0