World Oil Prices are Rising
OREANDA-NEWS. The cost of January Brent futures on ICE Futures rose 0.9% to $ 46.49 per barrel. January contracts for WTI rose 1.1% on the NYMEX to $ 43.51 a barrel.
Thus, Brent crude oil rose in price to the level noted in March. Investors were inspired by news of the forthcoming coronavirus vaccine, which increases the chances of a quick recovery in global oil demand.
Global markets were also positively impacted by the fact that the administration of US President Donald Trump agreed to begin the process of transferring power to President-elect Joe Biden.
Last week, oil rose 5%. US crude oil inventories declined last week. The country's distillate stocks have been declining for the tenth straight week, the American Petroleum Institute and the US Energy Information Administration reported.
Traders' speculative interest in oil futures has risen amid media reports of Yemeni shelling of Saudi Aramco's distribution station in the Saudi city of Jeddah. Later, a source in the Ministry of Energy of Saudi Arabia said that the shelling did not affect the supply of oil products.
The market is waiting for the next meeting of the OPEC + countries, which is scheduled for December 1. Under the current agreement, the cartel will cut production by 7.7 million b / d until the end of 2020, and from January 2021 will soften the reduction to 5.7 million b / d.
The high rate of spread of the coronavirus in the world and the growth of oil production in Libya could force OPEC + to postpone the increase in production, so as not to increase supply and pressure prices.