This is why oil prices can't go far - Kakiforex | Forex markets for the smart money. This is why oil prices can't go far This is why oil prices can't go far

March 11, 2021

This is why oil prices can't go far

 Black commodities traded steady by posting modest gains in the Asian session, supported by signs of recovery in fuel consumption as several major economies gradually reopened.

US WTI rebounded strongly at $ 65 a barrel ahead of the opening of the European session, while Brent crude strengthened at $ 68.84 a barrel.

Adding to sentiment for crude oil prices is the approval of a $ 1.9 trillion US stimulus package bill by the House of Representatives, which is expected to be signed by President Joe Biden on Friday.

However, the increase in US crude oil inventories, which was much larger than expected, has limited the movement of oil prices from rising higher.

The Energy Information Administration (EIA) reported a significant jump in U.S. crude oil supplies with an increase of 13.8 million barrels last week, compared to expectations for an increase of 816,000 barrels.

However, U.S. gasoline and distillery inventories declined, falling 11.8 million barrels and 5.5 million barrels, respectively. This prompted market confidence that there was an increase in demand for the fuel.