GBPUSD traded near three-year highs on Monday morning European market trading, driven by a combination…
Oil prices continue to rise as demand rates improve
Oil prices extended their gains with the opening of the trading session today in the American market, to continue its daily gains for the sixth session in a row so that the American crude achieved its highest level in about two and a half months, and Brent crude exceeded the level of 80 dollars per barrel for the first time in three years. This rise comes thanks to the increasing Concerns about the market turning into a deficit during the remaining three months of this year, in light of the clear improvement in consumption and the levels of actual demand for fuel, coinciding with the failure of OPEC Plus supplies to reach the planned levels.
This comes at a time when market participants are awaiting the release of preliminary data on commercial crude stocks in the states by the American Petroleum Institute.
Oil prices continue rising
West Texas Intermediate (US) crude oil rose by about 1.7% until 10:20 GMT, to trade the price of a barrel around the level of 76.65 US dollars, the highest since the sixth of last July, from the opening level of today’s session at 75.40 dollars, and the lowest price reached at 75.23 dollars barrel.
The international crude “Brent crude” also rose by 1.7 percent to the level of $ 80.72 a barrel, the highest since October 2018, compared to the opening level of $ 79.40, and it recorded early in the session the lowest price at $ 79.23 a barrel.
At the conclusion of trading on Monday, US crude managed to achieve a gain of 1.9%, and the benchmark Brent crude gained 1.8%, in the fifth daily gain in a row, within the longest series of daily gains in about three months.
International oil prices are receiving more support at the present time, in light of the strong indications of a clear improvement in the levels of actual demand for fuel around the world, coinciding with the weak pace of global production, which may lead to the market turning into a deficit during the last quarter of this year 2021.
In the United States, commercial crude stocks fell to their lowest level in nearly three years, which indicates a clear improvement in demand and withdrawal levels in the “largest oil consumer in the world.”
In India, “the fourth largest consumer of oil in the world,” crude oil imports in the country rose last August to the highest level in three months, in light of the authorities’ readiness to meet the recovering demand, especially after easing restrictions and general isolation measures related to the Coronavirus crisis.
On the other hand, some members of the global alliance “OPEC Plus” suffered to increase production to the levels set during the months of August and September, due to the lack of investments and delays in maintenance work during the worst health crisis the world had not witnessed in nearly 100 years.
US inventory report
Later today, the American Petroleum Institute is scheduled to release its preliminary data for commercial crude stocks in the United States, amid expectations that they will decline for the tenth week in a row, while tomorrow, official data will be released by the US Energy Information Administration.
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.