(Bloomberg) -- Oil gained, nearing $60 a barrel, as investors continued to assess the recovery in consumption globally.Futures in New York rose as the dollar fell, making commodities priced in the U.S. currency more attractive. Federal Reserve Chair Jerome Powell said that the U.S. economy was poised for stronger growth, but he cautioned that the pandemic remains a threat. That’s been highlighted in other regions including parts of Europe, while another wave of infections in India is overwhelming the health system.Yemen’s Houthis said they attacked oil facilities in Saudi Arabia, as the group steps up strikes on the kingdom, a reminder of political tensions in the Middle East. While such attacks have increased this year, they rarely claim lives or cause extensive damage.Oil has gotten stuck in recent weeks, as traders look for more signs of a recovery in consumption from the Covid-19 pandemic. Trading volumes have slumped -- falling below their 15-day average every day last week -- as the market awaits a breakout. In the meantime, the OPEC+ alliance agreed to add more barrels from May.“Oil is in wait-and-see mode for the next catalyst,” said Giovanni Staunovo, commodity analyst at UBS Group AG. “The accelerating pace of vaccination we already see slowly will result in less mobility restrictions and support oil demand and prices.”Iran also remains a wildcard for the market. Talks between the OPEC producer and world powers on resuscitating a 2015 nuclear accord are set to continue this week after an initial round of discussions, described by a senior U.S. official as a good first step but still short of what’s necessary for a revival of the deal.See also: There’s a Lot of Unused Oil Stored Around the World: Julian LeeFurther down the line, the outlook for the oil market may be getting weaker, Morgan Stanley analysts Martijn Rats and Amy Sergeant wrote in a report. That’s because Iranian supply may return quicker than expected, while U.S. drilling activity has continued to increase. It means price gains later this year could be limited, they said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Oil prices rose on Monday on optimism over a rebound in the U.S. economy as coronavirus vaccinations accelerated and on tensions in the Middle East, though rising COVID-19 cases elsewhere kept a lid on prices. West Texas Intermediate (WTI) U.S. crude rose 78 cents, or 1.3%, to $60.10. "Prices are finding support from external factors such as the weaker U.S. dollar and higher risk tolerance among investors, plus OPEC's continued good production discipline," said Commerzbank analyst Eugen Weinberg.
It’s a quiet day ahead on the economic calendar. Stats from the Eurozone and the Bank of Canada’s Business Survey will draw some interest later in the day, however.