Jump to content

Oil starts new year on positive note, pandemic worries curb gains


MongiIG

Recommended Posts

Oil starts new year on positive note, pandemic worries curb gains

Reuters.png  CommoditiesJan 03, 2022 
 
 
Oil starts new year on positive note, pandemic worries curb gains© Reuters. FILE PHOTO: Oil storage containers are seen, amid the coronavirus disease (COVID-19) pandemic, in Los Angeles, California, U.S., April 7, 2021. REUTERS/Lucy Nicholson

By Mohi Narayan and Naveen Thukral

NEW DELHI (Reuters) - Oil prices firmed on Monday as the market kicked off 2022 on a positive note with suppliers in focus ahead of Tuesday's OPEC+ meeting, although surging COVID-19 cases continued to dent demand sentiment.

Brent crude added 59 cents, or 0.76%, to $78.37 a barrel, as of 0440 GMT. U.S. West Texas Intermediate crude futures gained 63 cents, or 0.84%, to $75.84 a barrel.

"Tightened supplies from Libya ahead of an Organization of the Petroleum Exporting Countries and allies (OPEC+) meeting kept the market sentiments positive," said Abhishek Chauhan, head of commodities at Swastika Investmart Ltd.

Libya's state oil firm said on Saturday the country's oil output would be reduced by 200,000 barrels per day for a week due to maintenance on a main pipeline between the Samah and Dahra fields.

Meanwhile, OPEC+ will probably stick to their plan to add 400,000 barrels per day of supply in February, four sources said.

Last year, oil prices rose around 50%, spurred by the global economic recovery from the COVID-19 pandemic slump and producer restraint, even as infections reached record highs worldwide.

U.S. health experts warned Americans to prepare for severe disruptions in coming weeks, with infection rates likely to worsen amid increased holiday travel, New Year celebrations and school reopenings following winter breaks.

Oil analysts have lowered their price forecasts for 2022 as the Omicron coronavirus variant poses headwinds to recovering fuel demand and risks a supply glut as producers pump more oil, a Reuters poll showed on Friday.

A survey of 35 economists and analysts forecast Brent crude would average $73.57 a barrel in 2022, about 2% lower than the $75.33 consensus in November. It is the first reduction in the 2022 price forecast since the August poll.

U.S. crude is projected to average $71.38 per barrel in 2022, versus the previous month's $73.31 consensus.

 

U.S. energy firms added oil and natural gas rigs for a record 17 months in a row as higher prices lured some drillers back to the wellpad after last year's coronavirus-driven decline in demand.

U.S. crude oil production rose to 11.47 million barrels per day in October, up 6% from a month earlier, as output soared in the Gulf of Mexico as the region recovered from hurricanes, according to a monthly report issued on Thursday by the Energy Information Administration.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Stumbled onto $weETH recently, and it’s got me thinking. It’s more than just staking ETH for rewards weETH also restakes automatically in EigenLayer, so you’re maximizing yield without extra effort. What really caught my eye, though, is how they’ve designed it to keep everything in your control with non-custodial staking.  Add in some perks like loyalty points and compatibility with DeFi protocols on Arbitrum and Polygon, and it’s set up to go beyond the usual staking.  Anyone else looking at $weETH? Worth it, or just another token in the mix?
    • In a strategic move to further solidify its position in the global cryptocurrency market, Bitget, a leading CEX, has made a significant move by appointing Min Lin as its new Chief Business Officer. With a history of leadership at Binance and Goldman Sachs, Lin brings over a decade of expertise to Bitget's ambitious expansion in Latin America. His unique blend of traditional finance and blockchain experience positions him to navigate the complex market dynamics in the region.  Bitget's CEO, Gracy Chen, believes Lin’s expertise is crucial for their strategic vision. “Min’s track record in scaling cryptocurrency businesses aligns seamlessly with our growth goals,” says Chen. In his new role, Lin emphasizes his commitment to innovation and user-focused products. He aims to promote wider acceptance of blockchain technology while tailoring solutions to meet the unique needs of Latin American users. This move underscores Bitget’s commitment to emerging markets. With a 98% increase in active users in Latin America in 2024, the potential for growth is evident. The question remains: how will this move influence the competitive landscape in Latin America?
    • Exchange tokens are a good alternative investment. Unlike regular coins, they provide access to exclusive privileges, including: -Deduction of trading fees, whether in spot or futures trading -Participation in airdrop campaigns, such as Launchpool, Launchpad, PoolX, and others The benefits of holding an exchange token cannot be overstated, yet many users are still unaware of these advantages.  I currently hold some MX, BGB, BNB, and KCS in my portfolio, though I initially knew little about the privileges associated with them. After joining this Bitget online community, I was able to connect with other BGB holders, interact with them, and discover a lot more. The minimum requirement is 100 BGB to gain access to the community, and there's an ongoing campaign with a range of merchandise giveaways. We could take advantage of this campaign as we’re now in Moonvember if you’re holding more than the minimum required amount. I’m not a financial advisor, so always DYOR.
×
×
  • Create New...
us