X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

  • 3 minutes Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Scientists Warn That Filling The Sahara With Solar Panels Is A Bad Idea
  • 11 minutes United States LNG Exports Reach Third Place
  • 15 minutes Joe Biden's Presidency
  • 7 hours U.S. Presidential Elections Status - Electoral Votes
  • 3 hours Interest article about windmills and waterwheels in Europe
  • 16 hours Retired RAF pilot wins legal challenge over a wind farm
  • 24 hours Speaker Pelosi, "Tear Down This Wall"
  • 1 day NYT:  The Supreme Court’s order (Re:  Trump’s tax returns) set in motion a series of events that could lead to the startling possibility of a criminal trial of a former U.S. president
  • 14 hours Chance for (Saudi)Arabian peninsula having giant onshore Gas too?
  • 1 day Disaster looming in UK offshore wind power
  • 2 days Wednesday Nikki Haley reached out to Trump for meeting at Mar-a-lago. Trump said No ! You blew it Nikki . . .
  • 11 hours “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 2 days Scientist clone endangered Black Footed Ferret from Ferret that died 30 years ago . It's a 100% exact genomic match.
Oil Prices Rally On U.S. Outages And A Weak Dollar

Oil Prices Rally On U.S. Outages And A Weak Dollar

After slipping late on Tuesday…

China's Oil Reserves Near Limit

China's Oil Reserves Near Limit

China's crude oil reserves have…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Rises On Expectations Of Tighter Market

Oil prices rose by more than 1 percent early on Friday, supported by expectations of a tightening market ahead and a weaker U.S. dollar.

As of 10:02 a.m. ET on Friday, WTI Crude was up 1.09 percent at $52.92 and Brent Crude was trading up 0.95 percent at $56.11.

The Brent Crude March 2021 futures contract expires today, and April is the more actively traded contract.

Oil prices rose on the last trading day before Saudi Arabia begins, as per its unilateral pledge, to cut in February and March an additional 1 million barrels per day (bpd) of its crude oil production beyond its quota under the OPEC+ pact.

The futures curve of the Brent contract is firming into backwardation, the state of the market signaling tighter supplies with the prices of the nearer futures contracts higher than those further out in time.  

Expectations that supply will be tighter when global oil demand is uncertain, with the continued spread of the coronavirus and new variants in South Africa and the UK, supported the price of oil early on Friday.

In addition, the U.S. dollar weakened today, making crude buying cheaper for holders of other currencies.

Economic data out of Europe on Friday surprised to the upside, which gave market participants hope that some of the biggest European economies did not contract as feared, despite the lockdowns at the end of last year.

The biggest economy in Europe, Germany, saw slim growth of 0.1 percent in Q4, beating expectations of zero growth, despite the new lockdown.

Spain’s economy grew by 0.4 percent in the fourth quarter, compared to expectations of contraction, while France’s economy, although shrinking by 1.4 percent in Q4, still beat forecasts of a 4-percent quarterly decline.

Despite the bullish factors combining to lift oil prices early on Friday, analysts continue to warn that the slow vaccine rollout and the still spreading COVID-19 could delay global economic and oil demand recovery.    

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News