Oil price rises ahead of the weekly report of the US Energy Agency

Mohammed Abdelkhalik
September 23, 2020

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Oil Prices – 23rd September 2020

Oil price remained on the rise on Wednesday in the process of achieving its first gain within the last four days, based on hopes for an improvement in fuel demand in the United States, after a significant decrease in gasoline stocks, according to preliminary data from the American Petroleum Institute, and FP Markets traders are awaiting official data Later in the day, the weekly report of the US Energy Agency was included.

Oil price rose by 0.8% to $ 40.05, from an opening level of $ 39.74, and the lowest level at $ 39.28.

Upon yesterday’s settlement, US crude oil price lost 0.1%, in its third consecutive daily loss, due to growing concerns about conditions

Oil price rose after the API report

The API announced yesterday that gasoline stocks decreased last week by about 7.7 million barrels, which is nearly eight times expectations, in a good sign of supported fuel consumption levels in the world’s largest oil consumer.

Oil prices on 23rd September 2020

As for commercial stocks, the Institute announced an increase of about 0691 million barrels during the third week of September, in the second weekly increase in the last three weeks, contrary to the expected level of a decrease of about 2.3 million barrels per day.

Today, traders are waiting for commercial stocks and production levels official data, as part of the US Energy Agency weekly report, and the expected data refer to a decline in stocks by about 2.5 million barrels, which consider the second weekly decline in raw.

As for US production, it increased the previous week by about 900 thousand barrels per day, in the second consecutive weekly increase, bringing the total to 10.9 million barrels per day, after operating levels returned to normal after the end of the wave of hurricanes and storms, which hit the coast of the United States recently, and stopped production of about 1.2 million barrels per day.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.