Soared Oil prices Today, Tuesday, as investors are looking to chase deals after a drop in the previous day due to a rise in OPEC + production, while prospects for a recovery improved thanks to strong economic data from the United States and China.
Crude futures rose Brent 78 cents, or 1.26 percent, to $ 62.93 a barrel, after falling 4.2 percent on Monday.
U.S. West Texas Intermediate crude futures rose 81 cents, or 1.38 percent, to $ 59.46 a barrel, after falling 4.6 percent on Monday.
Market sentiment received a boost from the Institute for Supply Management survey on Monday that revealed that US service sector activity reached an all-time high in March.
The data comes after a jobs report on Friday that exceeded expectations by adding 916,000 jobs to the US economy last month.
“The US data confirmed the growth momentum in the world’s largest economy, leading to a bright outlook for energy demand,” said Margaret Yang, strategy at the Daily Fix.
Positive sentiment was boosted, as a private sector survey on Tuesday revealed that Chinese service sector activity accelerated in March as companies hired more employees and became more optimistic.
In addition, England is set to ease anti-coronavirus restrictions on April 12, with activities including entire stores, gyms, hair salons and outdoor hospitality areas reopened.
New Zealand will allow Australians to visit without quarantine from April 9, creating a “travel bubble” for neighboring countries.
Those factors on the demand side helped dispel concerns about a deal struck last week by the Organization of the Petroleum Exporting Countries (OPEC) and allies, the group known as OPEC +, to return 350,000 barrels per day of supplies in May, and another 350,000 barrels per day in June. And another 400,000 bpd or so in July.
Saudi Arabia is also set to get rid of an additional voluntary cut of one million barrels per day over those three months. Meanwhile, Iran, an OPEC member exempt from making cuts, has been increasing supplies.
The market’s attention is now shifting to indirect talks the United States and Iran are holding in Vienna from Tuesday as part of broader negotiations to revive the 2015 nuclear deal between Tehran and world powers.
The article Oil is booming thanks to strong economic data and bargain hunting was written in Al Borsa newspaper.