Oil prices increased, after reaching their highest levels in nearly a year in the previous session, supported by an unexpected drop in crude and gasoline inventories in the United States, which fueled hopes for a recovery in demand at a time when OPEC+ expects the market to record a deficit in 2021.<\/p>\n\n\n\n
Market sentiment also received support from news that Democrats in the US Congress have taken the first steps towards introducing a $ 1.9 trillion aid plan to mitigate the fallout from Corona that President Joe Biden is proposing without support from Republicans.<\/p>\n\n\n\n
US West Texas Intermediate crude futures rose 39 cents, or 0.71%, to $ 55.15 a barrel, gaining for the third consecutive session.<\/p>\n\n\n\n
The benchmark crude reached a one-year high of $ 55.26 on Tuesday.<\/p>\n\n\n\n
Brent crude futures rose to an 11-month high of $ 58.10 a barrel, to make gains for a fourth day after hitting 58.05 on Tuesday, the highest since January of last year.<\/p>\n\n\n\n
The American Petroleum Institute announced that US crude inventories fell by 4.3 million barrels in the week ending January 29, compared with analysts’ expectations in a Reuters poll for a 446,000-barrel increase.<\/p>\n\n\n\n
Gasoline stocks fell by 240,000 barrels, defying analysts’ expectations of a 1.1 million barrel rise, while distillate stocks, which include heating oil and jet fuel, fell 1.6 million barrels, a decline that exceeds expectations.<\/p>\n\n\n\n
Today, US government data is due from the Energy Information Administration.<\/p>\n\n\n\n
The market also received support from the latest estimate by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, the group known as OPEC+, that crude stocks will fall below the five-year average by June.<\/p>\n\n\n\n
This indicates that the production cuts implemented by the producers succeeded in returning the balance to the market.<\/p>\n\n\n\n
OPEC+ expects production cuts to keep the market in the deficit over the course of the year, and for the deficit to rise to a peak of 2 million barrels per day in May, even though the group revised downward its forecast for demand growth, as revealed by a document seen by Reuters yesterday.<\/p>\n\n\n\n
A ministerial meeting will be held on Wednesday for the group, but it is unlikely to recommend any adjustments to oil production policy.<\/p>\n","protected":false},"excerpt":{"rendered":"
Oil prices increased, after reaching their highest levels in nearly a year in the previous session, supported by an unexpected drop in crude and gasoline inventories in the United States, which fueled hopes for a recovery in demand at a time when OPEC+ expects the market to record a deficit in 2021. Market sentiment also …<\/p>\n","protected":false},"author":9,"featured_media":31014,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,6827,49,36],"tags":[6846],"class_list":["post-40920","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-daily-economic-reports","category-economic-reports","category-market-updates","tag-oil"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/40920","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=40920"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/40920\/revisions"}],"predecessor-version":[{"id":40921,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/40920\/revisions\/40921"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/31014"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=40920"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=40920"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=40920"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}