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On Wednesday, global prices of oil are showing steady growth, following the impressive rally during the last two days. First of all, it should be noted that the unexpected decline in US oil reserves and the OPEC + deficit forecast in the global oil market for this year, contributed to the strong positive dynamics.
Here, Brent crude oil futures increased by 0.3%, that is, to $57.63 per barrel. It can be recalled that they reached $ 58.05 at the trading session the day before, which was the highest since January 2020.
At the same time, WTI crude oil futures also rose by 0.24%, namely to $ 54.89 per barrel. Yesterday, they recorded an annual high of $ 55.26.
As soon as this week started, oil prices have increased by an average of 3-5%. At the beginning of this month, it mainly anticipated OPEC + efforts to reduce production and hopes for an increase in demand. In the United States, a significant improvement in the situation with COVID-19 was observed compared to January and so, a number of OPEC + countries, including Saudi Arabia, supported the initiative to further reduce production in February-March.
Experts believe that a significant reduction in the production of oil will cause a deficit in the market this year. This is according to the document discussed at the meeting of OPEC + experts on Tuesday.
Meanwhile, on Wednesday, data from the American Petroleum Institute (API) showed that oil reserves in the United States declined contrary to last week's forecasts.
US stocks in warehouses fell by 4.3 million barrels last week and showed a level of 477.6 million barrels, which was against experts growth forecasts of only 446 thousand barrels. In addition, reserves at the distribution center in Cushing, Oklahoma, plunged by 1.9 million barrels.
Gasoline stocks also declined by 240 thousand, with a forecast growth of 1.1 million barrels. Distillate reserves was down by 1.6 million barrels, while analysts expected a decrease of 429 thousand barrels.
Another growth impulse of the oil market was the news that the Democrats in the US Congress began to agree on a $1.9 trillion state aid plan proposed by Joe Biden to combat the effects of COVID-19 without the support of Republicans.
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