Oil gains on strong Chinese data, rebound capped by vaccine concerns | News on the coronavirus pandemic

Analysts fear that breaks on the Johnson & Johnson vaccine will delay economic recovery and limit growth in oil demand.

Oil prices stabilized on the upside on Tuesday thanks to strong Chinese import data, but the rally was capped by fears that breaks on the Johnson & Johnson vaccine could delay the economic recovery and limit the growth of demand for oil.

Global benchmark Brent crude oil futures stabilized at 39 cents, or 0.6%, at $ 63.67 per barrel, while US West Texas Intermediate crude oil futures stabilized gained 48 cents, or 0.8%, to $ 60.18 a barrel. Both contracts recorded changes of less than 1% for five consecutive sessions.

“We have traded within a range and need clear demand data and direction on US stocks to get out of this low,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.

Chinese exports grew at a steady pace in March, which is another boost to the country’s economic recovery, as global demand accelerated amid progress in COVID-19 vaccination. Import growth reached its highest level in four years.

China’s crude oil imports jumped 21% in March from a low a year earlier as refiners stepped up operations.

In its monthly report, the Organization of the Petroleum Exporting Countries raised its forecast for oil demand growth in 2021 to 70,000 barrels per day from its previous forecast to 5.95 million bpd, or 6.6 percent. .

Also supporting prices ahead of weekly data, U.S. crude oil inventories are expected to have fallen last week for a third week in a row, while distillate and gasoline inventories are likely to rise, analysts say in a poll of the U.S. Reuters news agency.

Still, US oil production from seven major shale formations is expected to increase for a third consecutive month, the US Energy Information Administration said on Monday.

The slowness of vaccinations in Europe and the anticipation of an additional supply of Iranian oil in the coming months have capped the price increases.

Johnson & Johnson has said it will delay the rollout of its COVID-19 vaccine in Europe and is examining cases of extremely rare blood clots in people after U.S. federal health agencies recommended suspending use of the vaccine because six women under 50 developed rare blood clots after receiving the stroke.

Yemen’s Iran-aligned Houthi movement said on Monday it had fired 17 drones and two ballistic missiles at targets in Saudi Arabia, including Saudi Aramco facilities in Jubail and Jeddah.

Meanwhile, Tehran said an explosion on Sunday at its key nuclear site was an act of sabotage by Israel’s nemesis and vowed revenge.

“Rising geopolitical tensions will only have a noticeable bullish impact on oil prices if coupled with a real physical disruption in supply,” PVM analysts said in a note.

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