22 C
Georgetown
Friday, March 5, 2021

Oil prices climb higher as Trump signs aid bill

Must Read

Exxon targeting new Guyana exploration well this month as search for more crude ramps up

Exploration and appraisal drilling offshore Guyana are moving forward on schedule with a new well expected to be spudded...

Bulletwood delivers ‘non-commercial’ find but in quality reservoirs

The drill campaign at the Bulletwood-1 prospect on the ExxonMobil-operated Canje Block has concluded and according to preliminary results,...

Exxon planning to submit plan for 4th major development at Stabroek Block by year-end

U.S Oil major ExxonMobil, operator at the 6.6 million acres Stabroek Block in Guyana, is planning to submit a...
OilNOW
OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.

(Reuters) – Oil prices edged higher on Monday after U.S. President Donald Trump signed a $2.3 trillion coronavirus aid and spending package, although lingering worries about near-term demand weighed on the market.

Brent crude futures added 12 cents, or 0.2%, at $51.41 a barrel at 0803 GMT, having fallen as much as 1.5% to $50.53 a barrel earlier in the session.

U.S. West Texas Intermediate (WTI) crude futures rose 18 cents, or 0.4%, to $48.41 a barrel.

“With trading volumes thinned by the holiday week, oil is likely to remain below the radar in coming days. That said, the signing of the U.S. stimulus bill, with the possibility of an increased size, should put a floor under oil prices in a shortened week,” said Jeffrey Halley, senior market analyst at OANDA.

The U.S. president’s move was cheered as it would restore unemployment benefits to millions of Americans and avert a federal government shutdown.

Global shares climbed on Monday after Trump signed into law the pandemic aid package, backing down from his earlier threat to block the bipartisan bill.

But a new highly infectious variant of the coronavirus, which was first seen in Britain and has now been detected in several other countries, has led to mobility restrictions being reimposed, fuelling concern over demand recovery.

The oil market will take cues from the virus situation as it develops in coming days, market watchers said.

“With the world now urgently launching mass vaccination programmes, the near-term fate for oil market might be how quickly vaccines can close the gap in the race to contain the new variant,” Stephen Innes, chief global market strategist at Axi, said in a note.

“Any complication on the pandemic front, whether its vaccine logistical, or lockdown related, could be met with more selling as January oil demand is on less solid footings, especially if the virus situations worsen more than anticipated post-holiday, ultimately handcuffing lawmakers.”

Latest News

Bulletwood delivers ‘non-commercial’ find but in quality reservoirs

The drill campaign at the Bulletwood-1 prospect on the ExxonMobil-operated Canje Block has concluded and according to preliminary results,...

Exxon planning to submit plan for 4th major development at Stabroek Block by year-end

U.S Oil major ExxonMobil, operator at the 6.6 million acres Stabroek Block in Guyana, is planning to submit a development plan to authorities in...

First 6 FPSOs can develop up to half of all oil found so far at Stabroek Block – ExxonMobil

Around 50 percent of the 9 billion barrels of oil equivalent discovered so far at the prolific Stabroek Block offshore Guyana can be developed...

Another local company fabricating fixtures for massive incoming oil production vessel

Guyana Oil and Gas Support Services Inc. (GOGSSI) is the second local company to be recognized in as many days for providing fabrication services...

Guyana condemns incursion of Venezuelan fighter jets at Eteringbang

Guyana's Ministry of Foreign Affairs on Wednesday issued a statement condemning the incursion of Venezuelan fighter jets into Guyana's airspace on March 2, 2021. Below...

More Articles Like This