Monday , January 25 2021
Home / Commodity Blog / Crude Oil Heads to End Friday & Week with Gains

Crude Oil Heads to End Friday & Week with Gains

Summary:
Crude oil was heading to end Friday with significant gains. Furthermore, crude was also on track for a weekly gain of more than 6%. Market analysts explained the strong rally by the decision of Saudi Arabia earlier this week to singlehandedly slash oil production by 1 million barrels per day — more than 1% of global supply. Usually, the impact of OPEC+ decisions does not persist for several days but this time was different. Market analysts question the ability of oil prices to continue rising in the face of negative factors. The spread of the novel coronavirus across the world and the subsequent lockdowns threaten to derail the global economic recovery that followed the previous wave of the pandemic in spring 2020. Crude oil is tightly linked to economic growth as it determines how much

Topics:
Vladimir Vyun considers the following as important: ,

This could be interesting, too:

Andrew Moran writes Commodities Week in Review: January 18 to January 22

Andrew Moran writes Oil Slumps Amid Vast US Supply Build, Higher Crude Rig Count

Andrew Moran writes Natural Gas Adds to 9% Weekly Loss Despite Large US Supply Drawdown

Andrew Moran writes Natural Gas Slumps Despite Bigger-Than-Expected Supply Drawdown, Polar Vortex

Crude oil was heading to end Friday with significant gains. Furthermore, crude was also on track for a weekly gain of more than 6%. Market analysts explained the strong rally by the decision of Saudi Arabia earlier this week to singlehandedly slash oil production by 1 million barrels per day — more than 1% of global supply. Usually, the impact of OPEC+ decisions does not persist for several days but this time was different.

Market analysts question the ability of oil prices to continue rising in the face of negative factors. The spread of the novel coronavirus across the world and the subsequent lockdowns threaten to derail the global economic recovery that followed the previous wave of the pandemic in spring 2020. Crude oil is tightly linked to economic growth as it determines how much oil is consumed. The rollout of vaccines can alleviate the issue but there are worries that it will not be happening as fast as was previously expected.

Baker Hughes reported that the number of US oil rigs increased by 8 to 275 this week. That was the seventh consecutive weekly increase. The number of gas rigs increased by 1 to 84.

Futures for delivery of WTI crude oil in February climbed by $1.54 (3.03%) to $52.37 per barrel as of 20:37 GMT on NYMEX today. Brent crude for delivery in March jumped by $1.64 (3.02%) to $56.02 per barrel on ICE. At the same time, February contract for natural gas dropped by $0.03 (1.1%) to $2.7 per million British thermal units.

If you have any questions and comments on commodities today, use the form below to reply.


Commodity Blog, 2021. | Permalink | No comment | Add to

Better Feed from Ozh

Vladimir Vyun
Vladimir is an online journalist with background in computer science and work experience in pension funds. He contributes news reports, fundamental analysis and sentiment forecasts to TopForexNews.com and CommodityBlog.com. His main specialization is the currencies of emerging economies and inter-market correlations with commodity and bond trading.

Leave a Reply

Your email address will not be published. Required fields are marked *