Oil prices peaked in 9 months when US crude inventories fell
Oil prices peaked in 9 months on December 17 trading day after US crude oil reserves fell deeper than forecast last week.
|Oil storage area on Jurong Island, Singapore. Photo: AFP|
Futures Brent crude oil futures rose 45 cents, or 0.9 percent, to $ 51.53 per barrel at 04:36 (GMT), while US WTI crude futures rose 46 cents, or so. equivalent to nearly 1%, and trading at 48.28 USD / barrel. With these increases, both Brent and WTI oil prices reached the highest level since the beginning of March 2020.
Mr. Edward Moya, senior market analyst at forex brokerage OANDA (New York), said that the increase in oil prices is a remarkable trend. “US oil inventories have fallen more sharply than expected; the fact that three of India’s refineries are operating at nearly 100% capacity suggests that crude demand is still high and it looks like the US will continue. adding monetary and fiscal stimulus packages, causing the US dollar to depreciate and most items more expensive, “said expert Edward Moya.
The US Energy Information Administration said US crude oil inventories in the last week down 3.1 million barrels, while the decline that analysts predicted was 1.9 million barrels.
The US lawmakers’ move closer to the agreement on the $ 900 billion fiscal stimulus package on November 16 is one of the main driving forces that bring oil prices “riding” the peak of the past 9 months. Democrats and Republicans are more positive and aim to finalize the stimulus deal after months of disagreement in the negotiations.
In addition, the US expansion of the campaign to distribute Covid-19-resistant vaccines to frontline doctors and medical staff is also a factor stimulating oil prices to go up.
“The final trading week of 2020 is very good for crude oil prices as energy traders focus more on the Covid-19 end of the tunnel light while Asia’s oil demand remains strong. high “, CMoya said.