Oil has been on the rise after the decline in US crude reserves and the hawkish statements from FED.
New York futures rose 1.5 percent, reversing losses caused by Omicron concerns. FED officials announced that they would end their asset purchase programs earlier than expected. After the Fed decision, which signaled that they will strengthen the fight against the highest inflation seen in the last 40 years, the S&P 500 approached its all-time high.
Although the world’s largest oil importer, China, imposed travel restrictions during the holiday period to control the Omicron, the demand outlook has decreased. The picture in the USA has a more positive outlook.
The International Energy Agency said this week that the market is already in an oversupply position. Vitol Group, the world’s largest independent oil trader, said that it expects prices to rise from next year due to the decrease in new investments for production.
According to the Energy Information Administration’s report, US crude oil stocks fell by 4.58 million last week, which is interpreted as a positive sign for the outlook for consumption in the world’s largest economy.
West Texas Oil for January delivery rose 1.1 percent to $71.64 on the Nymex market.
Brent Oil for February delivery rose 0.9 percent to $74.52 on the London ICE Futures Europe market.
