The price of crude oil this morning showed a positive trend, which is caused by statistical data on the reduction of the level of oil reserves in the United States of America. This was announced last night by the Ministry of Energy in their official report.
In addition, special support remains amid emerging signs of progress in the negotiation process for a new fiscal stimulus program in America. Assistance to the country's economy is an absolute necessity on which the entire process of future recovery and growth depends.
The price of future contracts for Brent crude oil, for delivery in February on the trading floor in London, moved up rapidly this morning after the negative dynamics that appeared at the beginning of yesterday. The increase was 0.94%, or $0.48, and the current value is $51.56 per barrel. Recall that at the end of the trading session on Wednesday, there was an increase in contracts by 0.6%, or $ 0.31, and the price stopped at around $51.08 per barrel.
The price of future contracts for WTI light crude oil, for delivery in January on the electronic trading platform in New York, rose by 1%, or $0.48, which moved it to the mark of $48.3 per barrel. Yesterday's trading ended in the green zone. The movement was in the region of 0.4%, or $0.2, and the final price moved to the level of $47.82 per barrel.
It is worth noting that, although yesterday's day began quite negatively for oil, at the end of it, black gold of both brands was still able to grow, even ending the session at its highest levels in the last nine months.
As for the statistics on the level of changes in the amount of crude oil reserves in the United States of America, it turned out to be much better than the preliminary forecasts of experts. According to official data, commercial stocks of raw materials decreased last week by about 3.14 million barrels. At the same time, analysts argued that there should be an increase from 1.9 to 2.2 million barrels. Market participants felt quite a serious strain in anticipation of statistics from the government and after its release, they were able to breathe a sigh of relief, sending the price of oil up again.
News of a new stimulus package in the United States also had a rather encouraging effect on investors. According to the latest press reports, Congressional leaders were able to agree on the most controversial issues which means that the signing of the main agreement is already very close. To date, the total amount of incentives is still about $900 billion. At the same time, as it was announced earlier, the entire package of measures will be divided into two parts. The discussion was held yesterday on the first part which does not concern assistance to local authorities and protection of companies from negative claims arising from the impact of the crisis associated with the Coronavirus Pandemic. However, importantly, this part includes direct payments to American citizens. This fact in itself has a positive effect on investors.
Nevertheless, news about the development and implementation of a vaccine against the Coronavirus also continues to strengthen the confidence of market participants. Mass vaccination is expected to be the basis for a rapid and widespread recovery in demand for crude oil which has been severely affected by the impact of the virus on the global economy.
Aside from that, if we take into account the fact that the American side has already signed all the necessary documents for the start of vaccination, we can assume that in the near future, the forecasts for the oil market will improve. This means that in the short term, oil will show growth.
Some analysts warn that the positive impact of the vaccine will not be felt immediately by the market. It should take at least a few months from the moment of its mass distribution. We can only wait and hope that no other negative factor will appear.
