Oil prices end lower as U.S. supply climbs a 4th week and after IEA deems supercycle unlikely MarketWatch 4 days ago
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Oil futures ended with a loss on Wednesday, after the U.S. government reported a fourth consecutive weekly climb in domestic crude inventories and International Energy Agency deemed a “supercycle,” or sustained rise in prices for the commodity, unlikely in its latest forecast.
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The Energy Information Administration reported Wednesday that U.S. crude inventories rose by 2.4 million barrels for the week ended March 12. The followed increases reported by the agency in each of the previous three weeks.
Oil falls further on demand outlook, U.S. stock build By Devika Krishna Kumar
FILE PHOTO: A sticker reads crude oil on the side of a storage tank in the Permian Basin
NEW YORK (Reuters) – Oil slipped for a fourth day on Wednesday, weighed down by expectations of weaker demand in Europe and by rising U.S. crude inventories.
Several European countries have paused the use of AstraZeneca’s COVID-19 vaccine on worries over possible side effects. Germany is seeing rising coronavirus cases, Italy is imposing a nationwide Easter lockdown and France plans to enforce tougher curbs.
“The suspension will not do the bloc’s economic and fuel recovery any favours,” said Stephen Brennock of oil broker PVM. “The hope now is that Europe can get its sluggish vaccine rollout back on track.”
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LONDON (Reuters) - An extended surge in oil prices is unlikely as the world rebounds from the pandemic given ample supply but changes are seen in demand and gasoline may have peaked, the International Energy Agency (IEA) said on Wednesday.
FILE PHOTO: Crude oil is dispensed into a bottle in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration
“Oil’s sharp rally to near $70 a barrel has spurred talk of a new supercycle and a looming supply shortfall. Our data and analysis suggest otherwise,” the IEA said in its monthly report.
“For a start, oil inventories still look ample compared with historical levels despite a steady decline . On top of the stock cushion, a hefty amount of spare production capacity has built up as a result of OPEC+ supply curbs,” it said.
Stimulus seen as global tonic
The United States’ massive stimulus spending in response to the coronavirus pandemic is forecast to lift economies around the globe, though in some regions more than others.
Global economic growth is expected to rise by 1.1 percentage points to 5.6 percent as a result of the relief aid－packaged in a $1.9 trillion bill signed by US President Joe Biden on Thursday, according to an analysis from the Organization for Economic Cooperation and Development, or OECD.
“This will not only boost the US economy, but it will fuel global growth through increased demand in the US and from the US to the rest of the world,” OECD Chief Economist Laurence Boone said of the stimulus at a presentation in Paris.