Oil prices edge lower amid doubts over U.S. stimulus, rising coronavirus cases
- Date: 27-Jan-2021
- Source: Zawya
- Sector:Oil & Gas
- Country:Middle East
Oil prices edge lower amid doubts over U.S. stimulus, rising coronavirus cases
Oil prices ticked up on Tuesday alongside rising European shares and amid reports of a blast in Saudi Arabia, trading near 11-month highs.Brent crude was up 32 cents, or 0.6%, at $56.20 by 1433 GMT, while U.S. crude rose 22 cents, or 0.4%, to $52.99. Both contracts rose nearly 1% on Monday and are set to post the third monthly rise in a row.Prices edged up after reports of a blast in the Saudi Arabian capital Riyadh, although the cause remains unclear. In Europe, gains in financial services and chemical sectors helped stocks rise. Risk assets such a equities and oil often move in tandem.Raising 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. On the supply side, the Organization of the Petroleum Exporting Countries and its allies' compliance with pledged oil output curbs is averaging 85% in January, tanker tracker Petro-Logistics said on Monday, suggesting the group has improved compliance with supply curb commitments. Also, output from the giant Tengiz field in Kazakhstan, disrupted by a power cut on Jan. 17, will be restored