Oil prices rose today, Tuesday, as investors are looking to chase deals after a drop in the previous day due to the rise in “OPEC +” production, while the prospects for recovery improved thanks to strong economic data.
By 06:46 GMT, Brent crude futures rose 1.26 percent to $ 62.93 a barrel, after falling 4.2 percent on Monday.
While US West Texas Intermediate crude futures increased 1.38 percent to 59.46 dollars a barrel, after falling 4.6 percent on Monday.
Market sentiment received a boost from the Institute for Supply Management survey, which revealed that US service sector activity reached an all-time high in March.
The data comes after a jobs report last Friday that exceeded expectations, adding 916,000 jobs to the US economy last month.
Margaret Yang, strategy at the Daily Fix, said the US data “confirmed the growth momentum in the world’s largest economy, leading to a bright outlook for energy demand.”
A private sector survey revealed, today, Tuesday, that Chinese service sector activity accelerated last March, as companies hired more employees and increased their optimism.
This contributed to dispelling concerns about an agreement concluded last week by the “OPEC +” group to return 350 thousand barrels per day of supplies next May, another 350 thousand barrels per day next June, and another 400 thousand barrels per day or so next July.
Saudi Arabia is also set to get rid of an additional voluntary cut of one million barrels per day over those three months.
At the same time, Iran, a member of the “OPEC” organization exempt from making cuts, is working to increase supplies.