Breaking News
0
Ad-Free Version. Subscribe now to follow markets, faster and distraction-free. More details

Crude Oil Prices Rise as IMF Raises Growth Outlook

CommoditiesJan 26, 2021 15:43
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith 

Investing.com -- Crude oil prices rose on Tuesday as the International Monetary Fund validated bets on a solid recovery in demand this year by raising its forecasts for global economic growth. 

By 9:40 AM ET (1440 GMT), U.S  crude futures were up 0.4% at $53.00 a barrel, while the international benchmark Brent contract was up 0.4% at $55.96.

U.S. Gasoline RBOB Futures were up 1.3% at $1.5771 a gallon.

Earlier, the International Monetary Fund had revised its estimate for world GDP growth to 5.5% from 5.2% previously, reflecting in large part the more ambitious stimulus plans of the new U.S. administration and Congress. The IMF said the plans of President Joe Biden could raise U.S. GDP growth by another 1.25%. For 2022, it expects world growth of 4.2%. It also now thinks that the economy shrank by 3.5% last year, rather than the 4.4% it still expected in October.

The IMF's projections are based on the assumption of an average oil price of $50.03 a barrel this year, which would represent an increase of some 20% from last year. The IMF derives its forecasts from the futures curve rather than crunching its own numbers for oil. 

In the near-term, however, the market still has to overcome a dip in consumption in Europe, which continues to struggle with new variants of the virus. Germany's Interior Minister said on Tuesday the country is looking at cutting international air arrivals to "almost zero" in its efforts to stop the new variants spreading in Europe's largest economy.

Elsewhere, the market was broadly calm, against a backdrop of what seems to be a gradual move back toward balance between supply and demand. The American Petroleum Institute will update the market later on that issue with its weekly assessment of U.S. crude and product stocks. A small rise of some 600,000 barrels in crude inventories is expected.

There was little reaction to news of explosions in the Saudi Arabian capital of Riyadh, while a strike over pay by Libyan oil facility guards, which some say could affect the country's exports if it turns more serious, is still the subject of negotiations.

 

Crude Oil Prices Rise as IMF Raises Growth Outlook
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email