Oil prices dropped on Friday as a collapse in bond prices led to gains in the US dollar and expectations grew that with oil prices back above pre-pandemic levels, more supply is likely to return to the market.
Oil prices slid more than 1% on Friday, adding to overnight declines, on worries that refineries will take time to resume operations after the big freeze in the US South, creating a gap in demand, while OPEC+ supplies were expected to rise.
Asian shares advanced to record highs on Monday as successful coronavirus vaccine rollouts globally raise hopes of a rapid economic recovery amid new fiscal aid from Washington, while oil prices rose on heightened tensions in the Middle East.
Chairman of India’s state-run Hindustan Petroleum Corp. suggests that the country would not hesitate to resume crude imports from Iran once the United States eases its bans on Tehran and allows shipments to be purchased by Indian refineries.
Oil prices climbed on Friday to their highest levels in a year, extending a run of strong gains on signs of economic growth in the United States and a continued commitment by producers to hold back crude supply.
Oil prices rose around 1% on Tuesday after major producers showed they were cutting crude output in line with their commitments on restraint, supporting a market thrown out of kilter by weak demand during the coronavirus pandemic.
Iran started extracting 65,000 barrels per day (bpd) of oil from Azar field which is its full capacity in the first development phase, said the managing director of Iran’s Oil Industries Engineering and Construction Company (OIEC).