During Thursday’s Asian trading time, WTI A crude managed to extend its previous three-day winning streak and rose higher to the $ 51 level after moving above the $ 50 level for the first time since February. However, the bullish distortion surrounding crude oil prices was mainly due to a larger-than-expected decline in U.S. oil stocks, which immediately alleviated oversupply concerns and contributed to crude oil growth. Meanwhile, oil prices have risen further after Saudi Arabia has promised to further reduce production in Febraury by one million barrels a day.
In addition, optimism about a possible coronavirus vaccination and the likelihood of an additional U.S. financial aid package also played an important role in supporting oil prices. The cheerful market sentiment in the wake of the Democratic Georgia surprise sweep provides additional support for higher-yielding oil prices. As a result of the buoyant market sentiment, the weakness of the broad-based U.S. dollar is also helping the oil to move upwards, as oil prices are inversely related to U.S. dollar prices. Alternatively, heightened concerns about the increase in COVID-19 cases and economically painful heavy shutdowns have become a key factor that may limit oil profits. Meanwhile, the sustained Sino-US struggle is also having a negative impact on crude oil prices. WTIcrude oil is currently trading at a rate of 51.09 and is consolidating between 50.39 and 51.14.
At the data level, data from the Energy Information Administration’s U.S. crude oil supply show U.S. crude oil inventories fell 8.1 million barrels last week, more than the median estimate for the 2.7 million barrels decline. In addition, the price of crude oil has risen further after Saudi Arabia has made a remarkable promise to further reduce crude oil production by one million barrels a day in February. It should be recalled that Saudi Arabia, the world’s largest oil exporter, announced that it would cut production by one million barrels per day (BPD) in February and March after OPEC +, a group of oil-exporting countries and other groups, , they met earlier this week. These positive steps have helped that the U.S. raw benchmark will break above $ 51 / barrel for the first time since February. Across the ocean, rising crude oil prices may also be linked to the cheerful market sentiment, backed by the Democrats ’surprise sweep. In Georgia. It is worth recalling that the Democrats won both seats in the Senate and, in contrast to the 50 seats of the Republicans, freed a total of 50 seats for themselves for the next term of Congress. Democrat victories in Georgia’s senate elections are likely to clear the way for further stimulus packages from the U.S. that will support the energy needs of the world’s largest economy. supported by the Democrats ’surprise sweep. In Georgia. It is worth recalling that the Democrats won both seats in the Senate and, in contrast to the 50 seats of the Republicans, freed a total of 50 seats for themselves for the next term of Congress. Democrat victories in Georgia’s senate elections are likely to clear the way for further stimulus packages from the U.S. that will support the energy needs of the world’s largest economy. supported by the Democrats ’surprise sweep. In Georgia. It is worth recalling that the Democrats won both seats in the Senate and, in contrast to the 50 seats of the Republicans, freed a total of 50 seats for themselves for the next term of Congress. Democrat victories in Georgia’s senate elections are likely to clear the way for further stimulus packages from the U.S. that will support the energy needs of the world’s largest economy.
On the USD front, the broad-based U.S. dollar was unable to stop its bearish movements in the early days and turned lower that day as demand for safe-haven assets declined as it progressed in agreeing U.S. fiscal stimulus. Moreover, the decline in the value of the green belly may also be associated with the hope that the Fed will keep interest rates lower for a longer period of time. However, losses in the U.S. dollar contributed to the bidding for crude oil. By 23:31 (GMT 4:31 AM) on Friday, the U.S. dollar index, which follows the dollar index against other currencies, fell 0.12% to 89,392.
In contrast, concerns about the growing number of COVID-19 cases and economically painful heavy shutdowns continue to challenge favorable market performance, which has become a key factor that may limit the rise in crude oil prices. According to the latest report, the UK has registered more than 1,000 deaths a day for the first time since April, Japan is ready to declare a state of emergency in Tokyo and surrounding areas, and China has reported several infections near Beijing.
Moving forward, market traders are keeping an eye on the December release of U.S. ISM Services PMI, which is expected to stand at 54.5, up from 55.9. Meanwhile, updates on Sino-US ink and virus issues did not lose their relevance that day. Good luck!