Oil Up, but Eases from Five-Day Rally Over Profit Taking By Investing.com

© Reuters.

By Gina Lee

Investing.com – Oil was up Tuesday morning in Asia but eased after a five-day rally. I as fears that higher prices that could weaken fuel demand increased, even as market sentiment remained firm amid a tight supply globally.

were up 0.28% to $78.94 by 10:27 PM ET (2:27 AM GMT) and were up 0.36% to $75.72. Both Brent and WTI futures remained above the $75 mark.

“Oil markets took a breather after a long rally, with some investors scooping up profits,” Fujitomi Securities Co Ltd analyst Toshitaka Tazawa told Reuters, amid concerns that surging oil prices may reduce fuel demand.

“Still, the market sentiment remained strong with tighter supply,” he added predicting that Brent futures could try a key $80 a barrel soon. Goldman Sachs Group Inc. (NYSE:) also raised its year-end forecast for Brent futures by $10 to $90 per barrel, which also boosted investor sentiment.

Meanwhile, several members of the Organization of the Petroleum Exporting Countries are struggling to meet their increased quota levels, with top African oil exporters Nigeria and Angola warning that they will do so until at least 2022.

Global supplies remain tight as fuel demand continues to recover from the latest COVID-19 outbreaks and Hurricane Ida disrupted production in the U.S. Gulf of Mexico region in late August 2021.

Investors now await , due later in the day.

Some investors also suggested that rising spot liquefied (LNG) and coal prices could also give the black liquid a boost.

“Oil demand could pick up by an additional 0.5 million barrels per day, or 0.5% of global oil supply, as high gas prices force a switch from gas to oil consumption,” Commonwealth Bank commodities analyst Vivek Dhar said in a note.

“That is set to tighten oil markets further, especially with supply additions from OPEC+ remaining quite conservative,” and energy prices could still rally from here if the winter period in the northern hemisphere proved colder than expected, the note added.

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.

Source link

Share Market Today