Oil prices rose in a trading session on Thursday, deepening growth after falling U.S. crude oil inventories boosted hopes for fuel demand and hopes for a possible Brexit deal.
What you should know: At the time of writing, oil deadlines for Brent rose 0.83% to $ 51.62, increasing the chances of them staying above $ 50 a barrel before Christmas. Also, West Texas futures rose 0.73% to $ 48.47.
Both major oil contracts recorded more than 2% yesterday.
Recent data from the Energy Information Administration (EIA) revealed a drop of 562,000 barrels in U.S. crude oil supply for the week to December 18th. Although the decline in U.S. crude oil inventories was much smaller than the fall of 3.186 million barrels, many leading energy experts predicted earlier, as well as the withdrawal of 3.135 million barrels last week.
Data from the Energy Information Administration follows the report of the American Petroleum Institute on the profit of 2.7 million barrels in the American supply of crude oil the day before.
Stephen Innes, chief strategist for the global market in Axi, spoke in a note to Nairametrics about the latest macro coming from the COVID-19 front calming the nerves of oil traders
“The oil market came together with the wider markets, supported by a steady bullish EIA list of reports.
“And thanks to medical experts who warn against overreacting to a new strain of the virus, there is a greater understanding that it will not trigger a new wave of serious lockouts around the world, as France has shown by quickly reopening trade and transport links with the UK. oil has provided great relief from the prospect of locking, ” Innes stated.
Also, macro-orders from the United Kingdom and the EU bloc have revealed that they are approaching an agreement on concluding a Brexit agreement, moving away from the chaotic finale scheduled for January 1st.