The Increase In Oil Continues!

Oil is in the longest winning streak in two years, backed by production supply cuts and vaccine practices in hopes of a recovery in demand.

The American Petroleum Institute announced on Tuesday that crude oil stocks fell 3.5 million barrels against expectations of 985,000 barrels. The Energy Information Administration's official stock report will be published at 15:30 GMT. Crude oil hovers at $61.51, up 42 cents, or 0.7 percent, immediately after reaching the 13-month high of $61.61 in the session. It averages at $58.65, up 29 cents or 0.5 percent, reaching $76. PVM Oil's Stephen Brennock said, "It is a question of whether there are more ways to go on this week's rise, but the oil has not lost its luster yet." Crude oil continues its longest earning period since December 2018, with nine consecutive sessions.

Some analysts say the prices have gone way beyond the underlying fundamentals.

Bjornar Tonhaugen of Rystad Energy said, "Current price levels are healthier than the real market, this is entirely due to supply cuts, but demand still needs to recover." Crude oil has been on the rise since November, as governments have issued massive stimulus packages to boost economic activity, COVID-19 mass vaccinations, and the world's best producers shut down supply. Its largest exporters are Saudi Arabia, other members of the Organization of Petroleum Exporting Countries (OPEC) and its allies known as OPEC+, in addition to the cuts, agreed to unilaterally reduce supply in February and March. Some analysts predict that supply will outstrip demand as more people return to their former lives in 2021 with vaccinations.   The Increase In Oil Continues! Source: https://www.cnbc.com/ You may also be interested in:

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