Energy Up Despite Oil Stockpile Buildup On Demand Bets -- Energy Roundup
|04/21/2021 | 04:11pm|
Shares of energy companies rallied as investors bet that rising demand would offset an increase in stockpiles.
While airlines have been measured in their assessment of ticket-sales forecasts, there's growing evidence that demand for jet and car fuel in the U.S. is set to rise this summer. "The first signs of inflation are starting to emerge now (that) many of the pandemic restrictions have been lifted and households can go out and spend again," said strategists at brokerage eToro, in a note to clients.
"The fact transport and fuel costs were the biggest contributors to inflation in March suggests both individuals and firms are taking back to the road, which is a tell-tale sign of increased economic activity."
Oil futures slipped after a report of another increase in U.S. stockpiles. Crude-oil stockpiles rose by 594,000 barrels to 493 million barrels, contrary to forecasts for a decline.
The Biden administration's plan to unveil aggressive targets for carbon-emissions cuts also weighed. Separately, the Biden administration signalled it was open to easing sanctions against critical elements of Iran's economy, including oil and finance, The Wall Street Journal reported.
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