Oil prices gain on Fed remark, decline in US output
- 25 Feb 2021
Gulf Today Report
Oil prices advanced on Thursday, supported by Fed remark that US interest rates will remain low and a drop in US output due to storm in Texas.
Brent crude futures for April gained 33 cents, 0.5%, to $67.37 a barrel by 05:50 GMT while US West Texas Intermediate crude for April was at $63.45 a barrel, up 23 cents, 0.4%.
US Federal Reserve assurance concerning rates has increased investors’ appetite for global equities.
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A severe winter storm in Texas has caused US crude production to drop by more than 10%, or 1 million barrels per day (bpd) last week, the Energy Information Administration said on Wednesday.
Jeffrey Halley, senior market analyst at OANDA said "combined with a dovish Jerome Powell and an already tight physical market, oil prices exploded higher."
According to ING, US crude stocks is likely to rise in the coming weeks as production bounces back.
The Organization of the Petroleum Exporting Countries and their allies including Russia, a group known as OPEC+, is due to meet on March 4.
