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In trading on Wednesday (4), crude oil futures prices rose for the third day in a row, eliminating the impact of the unclear results of the US presidential election, as investors focused on the reports from a sharp drop in US crude oil supply.
Furthermore, the OPEC + plan to postpone the relaxation of production quota restrictions from January next year also supports oil prices, as the decision is expected to reduce additional supply in the market.
FXTM Senior Research Analyst Lukman Otunuga said: “Despite the increased ambiguity in the US elections, investors have turned their attention to the latest industry data without a clear result or candidate announcement.”
The EIA announced on Wednesday that US crude oil inventories fell by 8 million barrels last week (as of 10/30), which was in line with API expectations on Tuesday and was higher than expectations. average of analysts.
According to the S&P Global Platts survey, analysts on average expected a decrease in crude supply of 600,000 barrels per day last week.
Otunuga said the extent of this decline in crude oil inventories was “very large,” indicating that “the economy may be rebounding from the new corona epidemic, but as the number of new diagnoses increases in Europe , may once again trigger market fears about new lockdown restrictions.The restrictions will curb demand for oil.
- The price of WTI crude oil futures for December delivery rose 1.49 US dollars, or nearly 4%, to close at 39.15 US dollars a barrel.
- The price of Brent crude futures for January delivery rose 1.52 dollars, or almost 3.8%, to close at 41.23 dollars a barrel. The intraday high reached $ 40.45.
The EIA report also showed that the Cushing Oil Storage Center in Oklahoma increased slightly by 900,000 barrels last week, but total oil production fell by 600,000 barrels last week, reaching 10.5 million barrels per day.
At the same time, the supply of gasoline increased by 1.5 million barrels per day and the inventory of distillate oil decreased by 1.6 million barrels per day.
According to the S&P Global Platts survey, analysts expected an average decrease of 1.1 million barrels per day in gasoline inventories and 2.4 million barrels per day in distillate inventories last week.
- The price of gasoline futures for December delivery rose 2.9% to close at $ 1,181 a gallon.
- The price of hot fuel oil futures for December delivery rose 4.1% to close at $ 1.1735 a gallon.
The analysis report of the Commercial Bank of Germany noted: “In fact, Russia and Arab countries are even discussing production cuts on a larger scale than the current ones to stabilize the market. If OPEC + cooperates firmly, it will definitely support the price of Petroleum”.
Other energy raw materials
- The price of natural gas futures for December delivery fell almost 0.4% to close at US $ 3,046 per million Btu, the third consecutive day of lows.
Christin Redmond, commodities analyst at Schneider Electric, said: “Short-term mild weather in the eastern United States, coupled with rising production levels, is putting pressure on prices.”
“The level of production has risen strongly this week, with an estimated daily production of about 89.5 billion cubic feet since Monday, the highest single-day production since May,” Redmond said.
According to a survey by S&P Global Platts, analysts expected on average natural gas inventories to fall by 28 billion cubic feet last week (as of 10/30).
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