A barrel (159 litres) of North Sea Brent to be delivered in January cost US$95.58 as of Wednesday morning. That was 93 cents more than the previous day. The price of US West Texas Medium (WTI) grade barrels for December delivery increased $1.07 to $89.44.
The previous evening, it was learned that the American Petroleum Institute interest group recorded a sharp decline in US oil reserves last week. Accordingly, crude oil inventories fell by 6.5 million barrels. A decline in oil reserves can mean stronger demand or insufficient supply, which often drives up oil prices.
As trade progresses, US stocks remain a dominant theme in the oil market. Official data from the US government is expected to be released this afternoon. A slight increase in oil reserves is expected here. A larger deviation from market expectations should give prices a new impetus.
In addition, investors in the oil market closely follow the monetary policy decisions of the US Federal Reserve. The statements made by US Federal Reserve Chairman Jerome Powell after the expected significant rate hike are particularly interesting. Investors are hoping to see indications of how well the central bank will tackle high inflation in the coming months. If central bankers act too aggressively when raising interest rates, this could put pressure on the economy and therefore reduce demand for crude oil.
(SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
