Original title: international oil prices rise by more than 2%, but OPEC+ will face a big test to determine whether the rise is reliable.
International oil prices rose more than 2 per cent on Monday after the US House of Representatives passed a massive economic stimulus package. Despite the mixed performance of manufacturing activity in Asia, investors have turned their attention to the upcoming meeting of the OPEC+ later this week.
Crude oil futures rose 1.76% to $62.58 per barrel at 16 ICE Beijing time; Nymex crude oil futures rose 1.76% to $62.58 per barrel.
Brent crude oil
Futures rose 1.77% to $65.56 a barrel. The largest daily increases in the two cities were 2.31% and 2.34%, respectively.
The prices of both recent-month contracts hit 13-month highs last week, and the oil market fell on Friday as financial markets fell overall after inflation fears caused the bond market to tumble.
"Oil prices rebounded within days, in line with most risky assets, as the U.S. House of Representatives passed the economic stimulus bill," Stephen Innes, chief global market strategist at Axi, wrote in a report on Monday.
The U.S. House of Representatives approved Biden's $1.9 trillion COVID-19 epidemic relief plan earlier Saturday, boosting investors' risk appetite. Approval of the COVID-19 vaccine made by Johnson & Johnson & Johnson also boosted the economic outlook.
Despite mixed manufacturing data from Asia's leading oil importers, investors have turned their attention to the upcoming meeting of the Organization of Petroleum Exporting countries and its ally (OPEC+) on Thursday to discuss whether to increase production from April.
OPEC+ cut production by 9.7 million barrels a day last year as the epidemic hit demand. As of February, the cut was still 7.125 million b / d, about 7 per cent of global demand. But as economies recover, it seems possible to increase production by 500000 b / d, and with Saudi Arabia's voluntary production cuts of 1 million b / d due to expire in March, OPEC+ has increased by as much as 1.5 million b / d since April. However, in view of the possible new setbacks in the fight against the epidemic, some aspects of the OPEC+ are opposed to increasing production. They will consider the latest market data before making a decision.
ING analysts said OPEC+ needs to be careful not to release excess capacity back to the market and to surprise traders. "there are a lot of speculative long positions in the oil market, and they don't want to see a reason to force them to close their positions."
Iran ruled out informal talks with major powers such as the US on Sunday to discuss ways to salvage the 2015 nuclear deal, insisting that the US must first lift all unilateral sanctions. The United States expressed disappointment, but was still prepared to "resume meaningful diplomatic contacts" and would consult with several other major countries to find a way forward.
The conflict between the two sides escalated after Israeli missiles hit areas south of the Syrian capital Damascus, the Syrian military said last Sunday night. Intelligence officials in the region say the Israeli attacks targeted Iranian-related assets.
Earlier, the Israeli cargo ship MV Helios Ray exploded in the strategic waterway of the Gulf of Oman. Israel's defense minister said on Saturday that a preliminary assessment found that Iran was responsible for the bombing.