[ad_1]
Once again, larger-than-expected crude inventory withdrawals were reported on Wednesday and Organization of Petroleum Exporting Countries (OPEC) questioned concerns about Covid’s impact on demand and causing excess supply and consequently oil prices repeated the performance of their previous session by rising 2 percent.
Brent on Wednesday settled 87 centsor 2.05 percent, to $ 43.32 per barrel, while West Texas Intermediate settled 84 cents, 2.09 percent, to $ 41.04 per barrel.
the American Petroleum Institute in a new report he said US crude inventories fell more than expected in the last week; Energy information management The data is expected to confirm Thursday’s draw.
As for OPEC, two sources told the media that the cartel achieved 100 percent fulfillment of a pact to cut the oil supply in September.
Citing these factors along with the dollar trading lower on Wednesday, Bob yawger, director of energy futures at Mizuhohe commented, “The tone has turned bullish here.”
Meanwhile, presumably unfazed by the media working overtime to report on the rise in Covid infections (while ignoring the low rates of hospitalization and death in many parts of the world compared to the first wave of the virus), Alexander novak, minister of energy for Russia, said major oil producers will begin easing production restrictions as planned in January, regardless of new infections.
In a similar show of optimism, Vicki hollub, Director of Occidental Petroleum Corphe said to Energy intelligence forum on Wednesday that he expects global oil supply and demand to rebalance by the end of 2021 and that US crude production will grow modestly next year.
Still, outlets like the International Energy Agency cannot get rid of its Covid fears and stated in the latest monthly report that “there is a risk that the recovery in demand will be halted by the recent surge in Covid-19 cases in many countries”, warning that OPEC will open taps next year means “there is limited scope for the market to absorb.”
That said, potential good news for the recovery in crude demand still prevails, although the focus is now on rising infection rates in Europe: for example, Panama It became the latest country to resume international flights and departures after nearly seven months of restrictions, as part of a gradual national reopening of businesses and industries that began in June.
Additionally, to put the pandemic problem in perspective, the World Health OrganizationThe director general highlighted this week that “for every country that is experiencing an increase, there are many others that have managed to prevent or control widespread transmission” thanks to initiatives such as social distancing, hand washing and avoiding crowds.
[ad_2]
