Original title: Expectations of economic recovery and OPEC’s continued production restrictions boosted crude oil revenue to a record high in more than a year
According to the news from the financial community network on February 5, the global economy is recovering from the new crown pandemic. At the same time, OPEC and its allies will continue to limit production, which will boost energy products. Crude oil futures continue the previous rise. New York crude oil prices Rising for the fourth consecutive trading day, the highest closing in more than a year.
West Texas Intermediate crude oil for March delivery on the New York Mercantile Exchange rose 54 cents to close at $56.23 per barrel, an increase of 1%. On the ICE European Futures Exchange’s global benchmark, April Brent crude oil rose 38 cents to 58.84 US dollars per barrel, an increase of nearly 0.7%, and rose to 59.04 US dollars per barrel during the session. Dow Jones market data showed that West Texas Intermediate crude oil rose for the fourth consecutive trading day on Thursday, and the contract price of recent months reached the highest level since January 22, 2020. Brent crude oil prices rose for the fifth consecutive trading day, setting their highest closing level since February 20, 2020.
UBS Global Wealth Management analyst Giovanni Staunovo said in a recent report that as OPEC+ “strives to keep global oil production below demand, we expect that oil inventories will continue to decline this year. The launch of vaccines will occur in the next few years. This month supports global oil demand and promotes further increases in oil prices.”
Crude oil prices rose on Wednesday after data released by the US Energy Information Administration showed that US inventories fell less than expected and gasoline supplies increased. At the same time, OPEC+ did not make any changes to the production limits at the monthly ministerial committee meeting held on Wednesday, and said in a statement that it is “optimistic about the recovery in 2021.” At the same time, OPEC also stated that Saudi Arabia’s “significant additional voluntary supply adjustment” will take effect from February 1st and will continue until March next year. In January of this year, Saudi Arabia pledged to unilaterally cut its own oil output by 1 million barrels a day to offset increased production in Russia and Kazakhstan.
Phil Flynn, senior market analyst at the oil price futures group, said in a daily report that oil demand is rising. OPEC’s restraint and the plight of US oil production are causing global inventories to tighten. As we continue to maintain the pace of recovery related to oil demand for vaccines, there will be a severe shortage of global supply next year. ”
However, the U.S. Energy Information Administration said in a monthly report on Wednesday that it may take years for energy demand to recover from the epidemic. The government agency said that it is expected that by 2029, the total energy consumption of the United States will return to the level of 2019. But if the U.S. economy grows slowly, energy consumption may not return to pre-COVID-19 levels until 2050.
At the same time, natural gas futures prices have risen sharply after the U.S. Energy Information Administration (EIA) reported on Thursday that as of the week of January 29, domestic gas supply in the United States had decreased by 192 billion cubic feet. According to analysts surveyed by Standard & Poor’s Global Platts Energy Information, on average, the data is expected to show a decrease of 195 billion cubic feet this week.
Among energy products traded on the New York Mercantile Exchange, gasoline fell 0.2% to $1.6448 per gallon in March, and heating oil rose 0.6% to $1.7005 per gallon in March. Natural gas reached 2.935 US dollars per million British thermal units in March, up 5.2%.
Source: Financial World NetworkReturn to Sohu to see more
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