📈 69% of S&P 500 stocks beating the index - a historic record! Pick the best ones with AI.See top stocks

UPDATE 9-Oil prices steady as virus deaths rise, demand worries persist

Published 26-01-2021, 10:16 am
LCO
-
CL
-

* Blast heard in Saudi capital Riyadh, cause unclear

* Death toll in Britain from coronavirus passes 100,000 people

* U.S. crude stocks drop, fuel inventories higher -API (Adds API data)

By Devika Krishna Kumar

NEW YORK, Jan 26 (Reuters) - Oil prices were little changed on Tuesday as rising coronavirus deaths fed worries about the global demand outlook, but losses were capped by reports of a blast in Saudi Arabia.

Brent crude LCOc1 ended the session up 3 cents, or 0.05%, at $55.91 while U.S. crude fell 16 cents, or 0.3%, to settle at $52.61.

U.S. crude futures pared losses and Brent crude inched higher in post-settlement trade after data from the American Petroleum Institute showed U.S. crude inventories fell by 5.3 million barrels in the week to Jan. 22 to about 481.8 million barrels, compared with analysts' expectations in a Reuters poll for a build of 430,000 barrels. API/S

Indonesia, the world's fourth-most-populous country, surpassed a million confirmed coronavirus cases on Tuesday while the death toll in Britain passed 100,000 people as the government battled to speed up vaccination delivery and keep variants of the virus at bay.

The number of cases in the United States crossed 25 million on Sunday, a Reuters tally showed. dampening bullish sentiment, U.S. Democrats are still trying to convince Republican lawmakers of the need for more stimulus, raising questions over when and in what form a package will be approved. COVID numbers, vaccine struggles and uncertainty surrounding the Biden stimulus plan, are all conspiring to pressure prices," said Robert Yawger, director of energy futures at Mizuho Securities USA.

Compared to some other countries, vaccine roll-outs in the European Union have been slow and fraught with problems, not least interruptions to supply chains. edged up briefly after reports of a blast in the Saudi Arabian capital Riyadh, although the cause was unclear. prices were also supported by geopolitical tensions after two supertankers, with crew members from Iran and China, were seized on Sunday in Indonesian waters near Kalimantan island for suspected illegal oil transfers. are likely to hold back if the Indonesian vessel seizure gets resolved quickly and if today's blast in Saudi Arabia proves to be an isolated incident that does not escalate regional tensions, consequently not affecting oil output," said Rystad Energy's head of oil markets Bjornar Tonhaugen.

"Oil demand is definitely under pressure currently and will be for a while until lockdowns are lifted and COVID-19 infection speed slows down"

China is reporting rising COVID-19 cases, casting a pall over demand prospects in the world's largest energy consumer. Elsewhere, Indian crude oil imports in December rose to their highest in more than two years. the prospect of higher oil demand later in the year, the International Monetary Fund predicted global growth of 5.5% in 2021, an increase of 0.3 percentage points from the October forecast, citing expectations of a vaccine-powered uptick. GRAPHIC: U.S. oil may retest resistance at $52.98

GRAPHIC: Brent oil may rise into $56.21-$56.64 range

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.