Energy prices also surged on news that the United Kingdom and the European Union struck a trade deal just days before the Brexit deadline. Supply disorders in Nigeria and France reestablishing its border to England between worries over a new strain of the COVID-19 added to higher crude prices.
February West Texas Intermediate (WTI) crude oil futures rose $1.23, or 2.62%, to $48.25 per barrel at 17:49 GMT on Wednesday. US crude prices had slid as abundant as 2.7% in the last two sessions because of foreign demand concerns. Year-to-date, WTI prices are falling deeper than 21%.
Brent, the global benchmark for oil prices, rose over $51 amid the holiday-shortened trading week. March Brent crude futures turned on $1.23, or 2.45%, to $51.39 a barrel on London’s ICE Futures exchange. Thus far this year, Brent is falling more than 22%.
As stated by the US Energy Information Administration (EIA), national crude inventories decreased by 562,000 barrels in the week closing December 18. The market had predicted a drop of 3.186 million barrels. Wild stocks at the Cushing, Oklahoma storage facility slid 26,000 barrels.
Gasoline inventories fell by 1.125 million barrels. Meanwhile, distillate stocks declined by 2.325 million barrels.
For the 11th straight week, the Baker Hughes oil rig count was over 200. In the week closing December 23, the abundance of crude rig counts increased to 264, up from 263 in the past week. The whole rig count bound up from 346 to 348.
It is being stated that a Brexit deal could be published as soon as Christmas Eve within the UK and the EU
Financial markets have encouraged the news because a settlement would prevent a hard Brexit that would affect equities. In other great information for Great Britain, the French government reestablished its border with the UK following a brief ban that restricted drivers from entering France by tunnel or ferry except they tested negative for the COVID-19.
World markets have been abuzz on data that the UK courts two new coronavirus strains that seem to be 70% more contagious. The UK required an emergency lockdown, which triggered more than 30 countries to force further border checks and travel limitations. Brazil is also verifying that it has identified five new strains of the COVID-19.
As Reuters stated, Exxon Mobil performed a force majeure on the Qua Iboe crude oil export terminal in Nigeria. This has influenced output levels, but reports imply that the facility could continue operations early next month.
In other energy commodities, February natural gas futures plunged $0.201, or 7.23%, to $2.581 per million British thermal units (BTU). January gasoline futures raised $0.0414, or 3.09%, to $1.3809 per gallon. January heating oil futures surged $0.0386, or 2.64%, to $1.5017 a gallon.
COMMENTS