Oil prices rose 2 percent on Thursday, supported by record US demand, declining crude oil stocks and the optimistic economic outlook from the Federal Reserve, which overcame fears that the Omicron version of the coronavirus would affect global consumption, Reuters reports.
Crude oil and other risky assets, such as equities, also gained momentum after the Fed released an optimistic economic outlook, raising investor optimism even as the US central bank signaled the cessation of monetary stimulus, News.ro reports.
“The market was afraid of what the Fed was going to do, and now that we know what we’re dealing with, the market is recovering,” said Phil Flynn, a senior Chicago analyst.
Brent crude was up 1.76% to $ 75.18 a barrel, while US West Texas Intermediate (WTI) crude was up 2.1% to $ 72.39 a barrel.
Demand rose in 2021 after last year’s collapse. On Wednesday, the US Energy Information Administration (AIE) said refinery output, an indicator of demand, had risen to 23.2 million barrels a day (bpd) in the past week.
“These figures suggest a healthy economic environment. Although the Fed’s announcement triggered a rise in both oil prices and stocks, the withdrawal of economic support, along with the Omicron crisis, are the two major obstacles facing the oil market, “said Tamas Varga of PVM brokerage. .
Providing additional price support, the IEA also reported that US crude oil stocks fell 4.6 million barrels more than analysts estimated.
However, gains were limited by concerns about Co vid-19 and the prospect of a supply surplus next year, as reported by the International Energy Agency in its monthly report this week.
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