The oil price looks optimistic. What are the reasons?
Crude is steady as market conditions tighten notwithstanding soaring US output
On Monday, crude markets stood still, mostly holding on to Friday's huge revenues even though ascending American output put pressure on hopes the market are going to tighten after a 13% dip in American crude inventories since March.
Brent crude futures got to $52.70 per barrel, sliding a cent from their previous close.
American West Texas Intermediate crude futures hit $48.54 a barrel, soaring up to 3 cents from their previous settlement.
It emerged after a 3% leap in prices on Friday.
Market participants told that the market turned to be somewhat held back by ascending American output that has surpassed 9.5 million barrels a day, which is its highest outcome since July 2015.
However, the surge in American output might slow in the nearer future because energy companies reduce rigs drilling for new crude for a second week in three, as the Baker Hughes energy services company informed on Friday. By August 18 drillers managed to cut up to five crude rigs, thus bringing the total count down to about 763.
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The Canadian central bank will make a monetary policy report and announce interest rates on Wednesday, January 20, at 17:00 MT time. Also, the BOC press conference will be held later.
USD’s rally takes a pause, while riskier assets are modestly rising.