Oil hits highest in a year on growth hopes, OPEC+ cuts
By Devika Krishna Kumar NEW YORK (Reuters) - Oil prices hit its highest in a year on Friday, closing in on $60 a barrel, supported by economic revival hopes and supply curbs by producer group OPEC and its allies. Oil was also supported as U.S. stock markets hit record highs on signs of progress towards more economic stimulus, while a closely watched jobs report confirmed the labor market was stabilizing
By Devika Krishna Kumar
NEW YORK (Reuters) - Oil prices hit its highest in a year on Friday, closing in on $60 a barrel, supported by economic revival hopes and supply curbs by producer group OPEC and its allies.
Oil was also supported as U.S. stock markets hit record highs on signs of progress towards more economic stimulus, while a closely watched jobs report confirmed the labor market was stabilizing.
U.S. employment growth rebounded moderately in January and job losses in the prior month were deeper than initially thought, underscoring an urgent need for additional relief money from the government. President Joe Biden's drive to enact a $1.9 trillion coronavirus aid bill gained momentum on Friday.
Brent crude was up 72 cents, or 1.2%, at $59.56 by 10:52 a.m. ET (1552 GMT) after hitting its highest since Feb. 20 at $59.79. U.S. crude was up 76 cents, or 1.4%, at $56.99, after reaching $57.29, its highest since Jan. 22 last year.
"Brent is eyeing the $60 level now that OPEC+ has successfully eased most supply side concerns and optimism on the COVID front improves globally," said Edward Moya, senior market analyst at OANDA in New York.
"The fundamentals remain solid for crude, but a consolidation seems likely given the recent runup."
Brent is on track to rise more than 6% this week. The last time it traded at $60 a barrel, the pandemic had yet to take hold, economies were open and people were free to travel, meaning demand for gasoline, diesel and jet fuel was much higher.
The rollout of COVID-19 vaccines, however, is fuelling hopes of lockdowns being eased, boosting fuel demand. But even demand optimists such as OPEC do not expect oil consumption to return to pre-pandemic levels until 2022.
"What is really helping the market today, and is a more valid reason for the price rise we see, once again comes from Saudi Arabia and its top firm, Aramco," said Rystad Energy’s head of oil markets Bjornar Tonhaugen.
Aramco raised its Arab Light official selling price (OSP) to Northwest Europe by $1.40 a barrel from the previous month. The move could be a signal that Saudi Arabia is more confident in the outlook for oil demand, which is fueling bullish sentiment in the market, Tonhaugen said.
Oil also gained support from supply curbs by producers. OPEC and its allies, collectively known as OPEC+, stuck to their supply tightening policy at a meeting on Wednesday. Record OPEC+ cuts have helped to lift prices from historic lows last year.
"OPEC+ discipline has been a real positive," said Michael McCarthy, chief market strategist at CMC Markets.
Further boosting the market, a weekly supply report showed a drop in U.S. crude inventories to their lowest since March, suggesting that output cuts by OPEC+ producers are having the desired effect.
However, the oil rig count, an early indicator of future output, has risen for five straight months. Latest weekly data from Baker Hughes is due at 1 p.m.
(Additional reporting by Alex Lawler in London, Sonali Paul in Melbourne, Roslan Khasawneh and Koustav Samanta in Singapore; Editing by Marguerita Choy and Emelia Sithole-Matarise)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Subscribe to Moneycontrol Pro at ₹499 for the first year. Use code PRO499. Limited period offer. *T&C apply
By John McCrank NEW YORK (Reuters) - Robinhood, the online brokerage used by many retail traders to pile in to heavily shorted stocks like GameStop Corp, has made an ambitious push into loaning out its clients' shares to short sellers as it expands its business. The broker had $1.9 billion in shares loaned out as of Dec. 31, nearly three times the $674 million a year earlier, and it was permitted to lend out $4.6 billion worth of securities under margin agreements, around five times bigger than the prior year, according to an annual regulatory filing late on Monday
By Pete Schroeder and Chris Prentice WASHINGTON (Reuters) - U.S. President Joe Biden's pick to head a key market regulator promised on Tuesday a thorough review of issues raised by the GameStop Corp stock frenzy and suggested companies may have to disclose their potential risks from climate change