By Tsvetana Paraskova OPEC expects China’s economic rebound to lead global oil demand growth this year. Saudi Aramco reported lower first-quarter profits as oil prices declined, and demand for onshore drilling rigs in the Gulf is expected to jump over the next five years—these were the highlights in the oil and gas sector in the Middle East over the past month.
Oil Video 15.01.21.
Oil Moves Lower As Traders Take Profits After Rally
Yesterday, U.S. President-elect Joe Biden unveiled his stimulus proposal worth $1.9 trillion, and it looks like traders took this announcement as a signal to take some profits after the recent rally.
Advertisement
Start Trading
75% of retail CFD investors lose money
Today, riskier assets are under pressure in what can be seen as a classic “sell the news” move. Oil is losing ground together with other riskier assets and is currently trying to settle below the $52 level.
The near-term fundamental outlook for oil remains challenging as European countries are set to keep their lockdown measures for the upcoming weeks. Meanwhile, the start of mass vaccination programs was not as robust as expected.