Oil prices steady on scrutiny between rising supplies, demand outlook

Oil prices steady on scrutiny between rising supplies, demand outlook

Oil prices remained steady on Friday as investors contemplate between an increase in supply from major producers and the impact on fuel demand from the COVID-19 pandemic. According to analysts, global oil inventories are likely to keep decreasing, as fuel demand increases in the second half of the year as global economic recovery gains momentum. Virendra Chauhan, energy aspects analyst said "a lot of destocking is going on so we are well into the rebalancing process." Investors are worried about the effect of new restrictions and the slow pace of vaccination could alter the oil demand picture. Stephen Innes, chief global markets strategist at Axi, said oil prices are expected to trade in a range between $60 and $70 as investors weigh these factors. Both benchmark contracts hovered around unchanged levels after having jumped on Wednesday after the US Energy Information Administration reported a sharp, unexpected 10. 6 million barrel drop in crude stockpiles last week. Brent crude futures for January rose 22 cents, or 0. 5%, to $43. 97 a barrel by 07:33 GMT, while US West Texas Intermediate crude for December climbed 6 cents, or 0. 1%, to $41. 49 a barrel. January Brent crude futures, which will