[ad_1]
SINGAPORE/LONDON: Oil climbed to a nine-month excessive on Thursday after authorities information confirmed a fall in U.S. crude stockpiles final week, whereas progress in direction of a U.S. fiscal stimulus deal and powerful Asian demand additionally buoyed costs.
The U.S. greenback additionally set a 2-1/2-year low towards main rivals on Thursday. Oil costs typically rise when the greenback falls as a result of crude priced within the dollar turns into cheaper for patrons holding different currencies.
Brent crude futures was up 14 cents at $51.22 a barrel by 1110 GMT, having traded as excessive as $51.90.
U.S. West Texas Intermediate (WTI) crude futures rose by 20 cents to $48.02 a barrel, having traded as excessive as $48.59. Both benchmarks hit their highest since early March.
“All the headlines have been bullish for oil prices,” stated Edward Moya, senior market analyst at OANDA in New York.
“U.S. stockpiles posted a larger-than-expected draw, three of India’s refiners are operating almost at 100% capacity, indicating crude demand remains strong, and it seems the U.S. will continue to deliver more monetary and fiscal stimulus, sending the dollar lower and most commodities higher.”
U.S. crude inventories fell by 3.1 million barrels within the week to Dec. 11, the Energy Information Administration stated, excess of analysts’ expectations of a 1.9-million-barrel drop.
Also boosting oil costs, U.S. lawmakers edged nearer to settlement on a $900 billion virus-relief spending package deal on Wednesday.
The United States on Thursday additionally expanded its marketing campaign to ship COVID-19 vaccine pictures.
“It seems to be a much better festive season than most bullish traders could expect for. But whether oil prices can remain as high and keep these gains is still questionable amid the demand destruction lockdowns are causing,” stated Bjornar Tonhaugen at Rystad Energy.
Disclaimer: This put up has been auto-published from an company feed with none modifications to the textual content and has not been reviewed by an editor
[ad_2]
Source hyperlink