The oil price looks optimistic. What are the reasons?
Crude extends revenues
On Tuesday, crude prices extended profits, with Brent crude reaching a 26-month maximum, underpinned by Turkey's threat to reduce oil flows from Iraq's Kurdistan region to other countries.
November delivery crude futures gained 46 cents in London being worth $59.48 having settled up 3.8%. Previously, it reached $59.49 – the greatest outcome since July 10, 2015.
Additionally, November delivery US crude futures CLc1 gained 15 cents trading at $52.37 having reached a five-month maximum of $52.43.
Obviously, Brent's ascend suggests it extended revenues for a fifth straight day, leaping from $55 last week because OPEC as well as non-OPEC crude producers reiterated that the market was firmly making its way to rebalancing, while crude demand seemed strong enough.
Refineries in Philadelphia have reduced rates as oil deliveries have been hampered by rough seas because Hurricane Maria went north along the Atlantic Coast.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.