MELBOURNE (Reuters) – Oil prices were mixed on Friday as Saudi Arabia’s future supply cuts and lower U.S. oil stocks helped offset risks of slowing fuel demand as as a result of discontinued vaccine distribution and new infectious coronavirus strains.
U.S. West Texas Intermediate (WTI) crude futures slipped 3 cents to $ 52.31 a barrel at 0151 GMT, after falling 1.0% Thursday.
Brent crude times for March rose 14 cents, or 0.3%, to $ 55.67 per barrel, after falling 0.5% in the previous session.
Brent March ‘s contract expires on Friday. A more active contract in April rose 11 cents, or 0.2%, to $ 55.21.
Supply cuts support the market. Saudi Arabia is expected to cut production by 1 million barrels per day (bpd) in February and March, and compliance with production loops by the Organization of Petroleum Exporting Countries, known as OPEC +, has improved in the January.
Saudi cuts effectively mean OPEC + supply cuts will rise from 7.2 million bpd in January to 8.125 million bpd in February, Commonwealth Bank analyst Vivek Dhar said.
“OPEC +’s production strategy is still working and we have high hopes that we will get approval for the J&J vaccine sometime next week,” OANDA analyst Edward Moya said in a note.
A 9.9 million barrel drawdown in U.S. oil investments last week and predictions for a small fall in U.S. oil production in February are also helping to support the market. [EIA/S]
But market gains have been offset by concerns about stopping the spread of vaccines and the spread of new infectious variants of the coronavirus.
Analysts pointed to news of South Africa’s divergence reaching the United States, concerns about a flood of new cases in Israel despite its success in vaccinating its people, and vaccine circulation issues in the United States. Europe and the United States as a disincentive.
“Oil investors’ concerns … around access to vaccines and outreach, which could lead to long locks in Europe, may be the two cultures of a know-how loop It ‘s the worst of the ever – changing carousel of serious risks for the oil market, ”said Axi global strategist Stephen Innes.
Reciting with Sonali Paul; edited by Richard Pullin