Wednesday, February 3, 2021

Oil Jumps to One-Year High With Depleting Supplies Aiding Rally

 Oil climbed to the highest level in over a year as tightening global supplies and signs of strength in physical markets aided crude’s virus-recovery rally.


Futures rose 2.3% in New York to the highest in over a year, rising back above $55 a barrel in post-settlement trading after an industry group reported another decline in U.S. stockpiles. Crude has been climbing steadily since late last year as coronavirus vaccines and producers’ supply curbs boost expectations of a tighter market. OPEC and its allies expect to drain an oil surplus by the middle of the year.

Meanwhile, there continues to be signs of strength in the market for physical barrels of oil, with Royal Dutch Shell Plc bidding for more cargoes of benchmark-grade North Sea crude on an S&G Global Platts pricing window. The bids come a day after the oil major staged the heaviest buying by a single company since at least 2008.

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