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Oil prices turn higher, and US crude is near $ 77

  • 30 December, 2021
  • 6:42 pm EET

Oil prices turned higher during trading on Thursday, with US crude rising near $77, with optimism about crude demand.

The rise in oil prices came as US oil inventories data showed strong demand for fuel in the US, at a time when Omicron cases are on the rise.

Crude prices continued their fluctuations during today’s session, after they fluctuated yesterday between ups and downs, before ending Wednesday’s trading on a high.

 

Oil Prices Today

West Texas Intermediate crude futures prices – for February delivery – rose 0.5%, to $76.94 a barrel.

The price of Brent crude futures – for February 2022 delivery – also increased by 0.6%, recording $79.67 a barrel.

 

US Oil Stocks

“Oil prices rose overnight thanks to larger-than-expected declines in US crude and gasoline inventories, which represented a move in the opposite direction of corona injuries,” said Jeffrey Haley, chief market analyst .

And data from the US Energy Information Administration, on Wednesday, showed that US oil stocks fell by 3.6 million barrels in the week ending December 24, more than what analysts polled by Reuters had expected.

Gasoline and distillate inventories also declined, contrary to analyst expectations; This indicates that demand is still strong despite the high number of Corona injuries and record numbers in the United States.

Oil prices also drew support from steps taken by governments to limit the impact of high Corona cases on economic growth, such as facilitating testing rules and narrowing down those who need to be isolated as close contacts of positive cases.

 

OPEC+

Markets are awaiting the meeting of the Organization of Petroleum Exporting Countries (OPEC) and its external allies led by Russia, in the OPEC + alliance, on January 4 to decide whether to continue to increase production in February.

Yesterday, Wednesday, Saudi King Salman bin Abdulaziz stressed that the OPEC + production agreement is “necessary” for the stability of the oil market, and stressed the need for producers to comply with the agreement.

The Custodian of the Two Holy Mosques, in an annual address to the Shura Council, broadcast by state media, said that market stability and balance are among the pillars of Saudi energy policy, and that the efforts of the largest oil exporter in the world to maintain surplus production capacity have proven their importance in protecting the security of energy supplies.

He added, “The Kingdom… affirms its keenness on the continuation of the OPEC + agreement for its essential role in stabilizing the oil market, and also stresses the importance of all participating countries’ commitment to the agreement.”

 

Oil Prices In 2021

Global oil prices rebounded 50-60% in 2021 with fuel demand returning to levels close to pre-pandemic levels, while deep production cuts by OPEC+ producers for most of the year erased the oversupply that had been affecting the market.

China, the world’s largest crude importer, issued its first batch of 2022 import quotas to mostly independent refiners, totaling 109.03 million tons; That is 11% lower than the corresponding share a year earlier, industry sources said.

 

 

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