New reasons for oil growth
2022.12.22 00:50
New reasons for oil growth
Budrigannews.com – On Thursday, oil prices increased for the fourth day in a row, and jet fuel stocks tightened at the same time that a winter storm was threatening the United States and that travel is expected to soar during the holiday season.
prospects acquired 44 pennies, or 0.54%, to $82.64 at 0422 GMT, expanding gains of around 2.7% from the past meeting. The price of a barrel of U.S. West Texas Intermediate (WTI) crude rose by 49 cents, or 0.63 percent, to $78.78.
On Wednesday, government data showed that U.S. crude inventories fell by 5.89 million barrels for the week ending on December 16—much more than analysts had anticipated. This resulted in an increase in both benchmark contracts. EIA/S] Distillate stocks, which include jet fuel and heating oil, also fell, defying expectations of a build.
The falling reserves come as interest for warming oil is set to take off with a strong winter storm stirring things up around town States, with freezing wind chills expected as far south as Texas and record-breaking lows figure for Florida and eastern states.
With a surge in holiday travel following COVID, it is also anticipated that jet fuel consumption will rise.
National Australia Bank’s Baden Moore stated, “On our numbers… the crude market is finely balanced.” the director of commodity research
He stated, “China’s re-opening and a likely continued steady roll-up in global jet demand (towards 2019 levels) will tighten global crude markets and drive prices higher as we look into 2023.”
However, fears of a global recession and demand concerns resulting from China’s COVID-19 surge may limit oil futures.
Vandana Hari, the founder of oil market analysis provider Vanda (NASDAQ:), stated, “The gains look exaggerated, even with the unexpected draw in U.S. inventories.” Insights.
More Events favoring growth of Oil
She stated, “The bearishness of demand concerns is likely to prevail over any short-term props.”
A senior official from the World Health Organization said on Wednesday that China may be having trouble keeping track of COVID infections because of a big increase in the number of cases, and there are concerns about a lack of data from the country.
