2023-06-01 17:12:11
Oil prices
Oil prices jumped more than $2 a barrel, Thursday, with the decline of the dollar, optimism regarding the prospects for stopping raising interest rates in the United States, and the decisive vote in the House of Representatives on the government debt ceiling bill.
The US House of Representatives has approved a bill suspending the $31.4 trillion debt ceiling, boosting chances of averting a government default catastrophe.
Both benchmarks witnessed sharp declines on Tuesday and Wednesday.
And officials from the US Federal Reserve indicated, on Wednesday, the possibility of fixing interest rates this month.
According to the CME FedWatch Index, markets now expect, by 72.6 percent, that the Fed will hold interest rates at its next meeting.
The oil market focuses on the meeting of the OPEC + bloc, consisting of the Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia, on the fourth of June, which will witness the discussion of the possibility of further reducing oil production, or staying at the same current levels.
On the other hand, US Energy Information Administration data revealed, in its weekly report, that US crude stocks increased by 4.49 million barrels during the week ending May 26, contrary to analysts’ expectations, which indicated a decline of 1.1 million barrels for the past week.
In the week prior to May 19, the Energy Information Administration reported a drawdown of 12.5 million barrels, the largest drawdown in six months.
Meanwhile, the Energy Information Administration revealed the withdrawal of 2.6 million barrels from the US strategic oil reserve, which the administration of US President Joe Biden has been exploiting since late 2021 to alleviate limited supplies of crude oil in the market.
The Energy Information Administration data also showed a decline in gasoline inventories by 207 thousand barrels, compared to expectations for a deficit of 369 thousand barrels.
price movements
Brent crude futures rose $2.52, or 3.31 percent, to $74.98 a barrel by 17:00 GMT, and US Nymex crude rose $2.72, or 3.99 percent, to $70.81 a barrel.
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