OIl is higher following gains overnight. ANZ had a useful summary posted of the overnight moves, attributing the gains to (in summary):

  • weaker USD
  • Investors are increasingly confident that economic conditions will improve as vaccines halt the COVID-19 spread and allow movement restrictions to be eased.
  • Supply is still constrained
  • While the power crisis in Texas is easing, a surge in US shale oil looks unlikely. Some producers are using restored power to restart output, but the extent of damage to pipes and wellheads is as yet unknown. Even so, the lack of investment in capital expenditure is likely to keep any growth in output limited this year.