OIL JUMPS ON CHINA, US DATA

OIL ROSE more than 1 percent yesterday as Chinese economic figures and US vaccination rate pointed to a strong rebound in demand in the world’s two largest economies.

Investors remain wary, however, over record-breaking infection rates in India, the third-largest fuel importer worldwide, along with higher Opec+ oil supply.

Brent crude increased 92 cents, or 1.4 percent, to $67.68 (about R979) a barrel by 5.21pm. US West Texas Intermediate rose 96c, or 1.5 percent, to $64.54 a barrel.

The US and China, the world’s top two oil consumers, are expected to drive a recovery in demand from the coronavirus pandemic.

“Even as Covid-19 cases hit record levels this week, oil prices have moved higher on growing vaccination numbers in developed markets,” a BofA Global Research report said. “Recent data points to the high effectiveness of vaccines at preventing infections and fatalities.”

About a third of US residents have been fully vaccinated, Reuters’ coronavirus tracker showed.

Meanwhile, Chinese crude imports averaged a seasonal record in February and March from increased car sales, a recovery in local travel and a strong industrial backdrop, BofA Global Research said.

Still, parts of the world such as India are seeing rising coronavirus cases. India yesterday reported more than 300 000 new coronavirus cases for a 12th consecutive day.

The new wave of the virus has already led to a drop in fuel sales in April.

“India jitters are currently stopping oil prices from rising further,” said Rystad Energy analyst, Louise Dickson.

Brent has rallied almost 30 percent this year, recovering from last year’s historic lows thanks to record supply cuts by the OPec and its allies, together known as Opec+.