Wednesday, November 11, 2020

Is This a Sign of the Oil Market Starting to Recover?

 Black gold trading extended its rise near the two-month high after the American Petroleum Institute (API) reported a larger-than-expected fall in U.S. crude oil supply.

According to the API, US crude oil inventories fell by 5.15 million barrels last week, where petrol and diesel stocks also showed declines.

This reading is the second consecutive big drop in U.S. supply after it recorded a decline of 8 million barrels in the previous week.

In the Asian market session, Brent crude futures traded up 1% to $ 44.06 a barrel, while the US WTI gained 1.1% to $ 41.83 a barrel.

Oil prices, which had previously risen by more than 11% after being supported by Joe Biden's election as president and a positive report on the Covid-19 vaccine by Pfizer, continued to record higher increases to rise to the highest level since early September.

The next major focus for the crude oil market is the OPEC + meeting later this month, where it will decide whether to postpone plans to relax production cuts or not.