TOKYO (Reuters) – Oil prices soared higher Monday after a weak start, holding on to the past three months of gains, as the spread of crippling vaccines, new diseases and the discovery of new changes are holding back prices.
Brent crude futures went up 10 cents at $ 55.14 a barrel before 0233 GMT, while US West Texas Intermediate (WTI) gained 1 cents to $ 52.21. Both criteria won nearly 8% in January.
Oil prices have risen with ongoing vaccine programs in harsh countries and production cuts by major producers such as Saudi Arabia. But euphoria over a possible end to pandemic has been weakened by the slow pace of vaccinations and the rise of new mutations of the coronavirus.
However, with more vaccines successfully tested and diseases falling in some areas, demand for oil and fuel is likely to rise as more of the world’s population becomes protected. against COVID-19.
“Demand will come back at the table, led by Asia-Pacific and North America,” FitchSolutions said in a research note.
“Europe and Latin America will weaken, largely as a reflection of softer economic recovery in key markets in these sectors,” he said.
Oil prices are expected to remain around normal levels for most of this year before a land recovery near the end of the year, a Reuters poll showed late Friday.
U.S. oil and gas drills are preparing to pick up in demand and as higher prices make news sources profitable again, putting crowds for the sixth month in a row in January. [RIG/U]
U.S. production is rising and was over 11 million barrels per day in November for the first time since April, according to the Energy Information Administration.
Reporting by Aaron Sheldrick; Edited by Tom Hogue