Oil rallied as Saudi Arabia signaled confidence in the demand outlook with a surprise boost in crude prices, while investors awaited comments on monetary policy from Federal Reserve Chair Jerome Powell.
West Texas Intermediate futures climbed above US$75 a barrel, extending a rebound from the lowest since mid-December. Saudi Aramco increased most of its prices for crude that will be shipped to its main market of Asia in March, amid growing optimism over a robust demand recovery in China following the end of COVID Zero.
Monday’s trading saw a host of short-term supply outages, with significant flows disrupted in Turkey and Norway. Crude oil flows to Turkey’s Ceyhan oil terminal will resume shortly, an official with knowledge of the matter said. The dollar eased on Tuesday, making commodities priced in the currency more attractive to investors, ahead of commentary from Powell that may give clues on the Fed’s rate path.
Oil has fluctuated in a relatively narrow range so far this year, with the global Brent benchmark swinging between about US$80 and US$90 a barrel. While traders are awaiting more signs of stronger Chinese demand, that has been offset by signs of oversupply in the near term. Instead of cutting, Saudi Aramco “increased its official selling price for its flagship Arab Light grade to Asia in March, suggesting confidence in the demand outlook,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S. WTI for March delivery gained 2.1 per cent to US$75.68 a barrel as of 10:08 a.m. London time.There were more strikes across France on Tuesday, with walkouts at the nation’s refineries disrupting fuel deliveries, according to TotalEnergies SE.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Saudi Arabia unexpectedly raises oil prices for MarchSaudi Arabia raised oil prices despite crude prices having fallen about 7% this year. Find out more.
Read more »
Saudi Arabia unexpectedly raises oil prices for MarchSaudi Arabia raised oil prices despite crude prices having fallen about 7% this year. Find out more.
Read more »
How will EU ban and West’s price cap on Russian diesel fuel work?Europe’s ban takes effect Sunday following its embargo on coal and most oil from Russia
Read more »
McKinsey doesn’t meet criteria for banning company from federal contracts: bureaucrat | National NewswatchNational Newswatch: Canada's most comprehensive site for political news and views. Make it a daily habit.
Read more »
Federal government not protecting Parliament Hill interpreters: tribunalThe federal government has been found in breach of the labour code for failing to protect Parliament Hill interpreters from workplace injuries.
Read more »