The regeneration of oil-hungry refineries in the United States and higher demand forecasts have resulted into the highest weekly rise in oil prices since July. Furthermore, higher demand for oil in 2018 has been anticipated by the Organization of the Petroleum Exporting Countries. The glut is being tackled by the deal of non-OPEC states of cutting output. Moreover, a report by the International Energy Agency (IEA) stated the glut is minimizing due to production declines in non-OPEC and OPEC countries and strong European and U.S. demand.
Oil Demands to Advance Further Over Next Two Months
Director of market research at Tradition Energy at Stamford, Gene McGillian shared that the fresh speculative length has been attracted by this boost to the market. To sustain these high rates, the demands should continue to remain high, he shared.
U.S. West Texas Intermediate crude finished at Friday’s session unaltered from the prior session at $49.89 per barrel. The contract stated a weekly rise of 5.1 percent with its strongest form in nearly two months.
At $55.50 a barrel, Benchmark Brent crude was up 3 cents at 2:03 p.m. ET (1803 GMT), in an unstable session that made it stretch from a high of $55.75 a barrel to an intraday low of $54.86. Analysts at Panmure Gordon shared that the prices are now increasing since the last weeks as forecasts stated of increased demands from both the IEA and OPEC along with anticipated high demands from the U.S. as the oil refineries will resume their operations after Hurricane Harvey.