Oil prices rose on Tuesday, supported by potential relaxation of Covid-19 lockdowns around the world, positive economic forecasts and lower production as US supplies were slow to return after a deep freeze in Texas crude production shut down.
Brent crude was up $ 0.36, or 0.5%, to $ 65.60 a barrel at 1212 GMT, and US crude was up $ 0.39, or 0.6%, to $ 62.09. the barrel. Both contracts were up more than $ 1 at the beginning of the session.
“The vaccine news is helping oil as the likely removal of mobility restrictions in the coming months due to vaccine launches should further boost oil demand and price recovery,” said the oil analyst by UBS Giovanni Staunovo.
Commerzbank analyst Eugen Weinberg said optimistic oil price forecasts issued by major US brokers also contributed to the latest price rally.
Goldman Sachs expects Brent prices to hit $ 70 a barrel in the second quarter from the $ 60 it previously predicted and $ 75 in the third quarter from the previous forecast of $ 65.
Morgan Stanley expects Brent crude to rise to $ 70 in the third quarter.
“New cases of Covid-19 are falling rapidly globally, mobility statistics are bottoming out and starting to improve, and in non-OECD countries, refineries are already running as hard as before Covid- 19, ”Morgan Stanley said in a note.
Bank of America said that Brent prices could temporarily rise to $ 70 a barrel in the second quarter.
Disruptions in Texas caused by last week’s winter storm also supported oil prices. Some US shale producers are forecasting lower oil production in the first quarter.
US stocks of crude oil and refined products likely declined last week, a preliminary Reuters poll showed on Monday.
A weaker dollar also provided some support for oil, as crude prices tend to move inversely to the US currency.