22/12/2022–|Last updated: 12/22/202211:36 AM (Makkah)
On Thursday, oil prices continued to rebound for the fourth day in a row, as stocks of crude, heating oil and jet fuel became increasingly scarce in the United States, at a time when a winter storm was sweeping the country, and travel rates were heading to rise during the holiday season.
And by 04:22 GMT, Brent crude futures increased 0.54%, to $ 82.64, extending gains of regarding 2.7% from the previous session. Brent contracts are currently trading at $82.36 a barrel.
US West Texas Intermediate crude futures rose 0.63%, to $78.78. US crude contracts are currently trading at $78.6 a barrel.
And the two crude futures jumped yesterday following government data showed that US crude stocks declined at a much greater rate than analysts had expected, as they fell by regarding 6 million barrels for the week ending December 16.
Distillate stocks – which include heating oil and jet fuel – also declined, contrary to expectations of a rise.
The decline in stocks comes with the expectation of higher demand for heating oil, in light of the strong winter storm sweeping the United States.
Scarcity in the markets
Jet fuel consumption is also expected to rise with the post-coronavirus travel recovery, with the year-end holiday season approaching.
“The crude oil market is nicely balanced,” said Baden Moore, head of commodities research at National Australia Bank. global crude markets and pushes prices higher.
However, demand concerns stemming from concern over a global recession, and an increase in coronavirus cases in China, may dampen oil futures.
A senior official at the World Health Organization said yesterday that China may have difficulty in accurately counting injuries at a time when the country is witnessing a significant increase in cases.
