Oil prices are stable near the highest level in a year

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Oil prices stabilized near their highest levels in a year, Tuesday, amid signs of easing global restrictions related to the Corona virus, although concerns about the pace of the US economic recovery and the return of Texas oil production kept the gains under control.
US crude closed down 3 cents at $ 61.67 a barrel, and is still close to its highest level since January 2020. Brent crude settled up 13 cents, or 0.2%, to $ 65.37 a barrel.
In the morning, oil prices jumped by more than a dollar, as they received support from optimism about the distribution of vaccines against Covid-19 and a decrease in production as US supplies slowly return after freezing weather in Texas that stopped crude production last week.
The two benchmarks rose more than 4% in Monday’s session.
Goldman Sachs Commodities Research raised its forecast for Brent crude by ten dollars for the second and third quarters of 2021, citing expectations of lower inventories, higher cost margins for resuming upstream activities, and speculative inflows.
The investment bank expects Brent prices to reach $ 70 a barrel in the second quarter from the $ 60 it had previously expected, and to reach $ 75 in the third quarter from $ 65 previously.
Morgan Stanley expects Brent crude prices to rise to $ 70 a barrel in the third quarter thanks to “signs of a significant improvement in the market,” including better demand prospects.
A preliminary Reuters poll on Monday showed that stocks of crude oil and refined products in the United States were likely to decline last week, due to the disruptions in Texas. (Reuters)




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