Oil prices rose on Monday. Brent rose to $ 70 a barrel in accordance with the economic recovery in China and the energy demand outlook accelerated at the beginning of 2021 in China the world’s largest oil importer.
Brent crude futures for May gained 47 cents, or 0.7%, to $69.69 a barrel by 0438 GMT while West Texas Intermediate (WTI) crude for April was at $66.10 a barrel, up 49 cents, or 0.8%.
According to the data, while China’s industrial production growth accelerated in January-February, exceeding expectations, daily refinery output data increased by 15% compared to the same period of the previous year.
China’s heavy industry showed strong growth as cement, steel, coal and aluminum production recorded double digit growth compared to 2019’s pre-COVID epidemic levels. It takes energy to produce and transport all these materials.
Saudi Arabia, the largest oil exporter, reduced the supply of crude oil for April loading by up to 15% to at least four North Asian buyers, meeting the normal monthly needs of Indian refineries.
Supply cuts continue as the Organization of Petroleum Exporting Countries (OPEC) and its allies decided earlier this month to extend most supply cuts until April.
The weekly capacity of oil refineries in the United States has increased by 1.6 million barrels per day, as many facilities were operational after the severe winter storm in Texas last month.
