The oil price looks optimistic. What are the reasons?
Crude prices edge up as Hurricane Harvey heads for American Gulf coast
On Friday, crude rallied because the US petroleum industry got ready for probable output disruptions due to the fact that Hurricane Harvey was making its way to the heart of the nation's crude industry in the Gulf of Mexico.
Since Thursday the storm has quickly intensified, turning into potentially the greatest hurricane to affect the American mainland for 12 years and also taking aim between Houston as well as Corpus Christi on the coast of Texas.
American West Texas Intermediate crude futures hit $47.74 a barrel, rising 0.7% from their previous settlement.
As for Brent crude futures, they reached $52.39 a barrel, adding 0.7% from their previous close.
Crude prices tacked on because oil output in the affected area rapidly shut down in preparation for the upcoming hurricane, and on hopes that closures could continue if the storm provokes extensive damage.
American gasoline prices have risen by nearly 10% since Wednesday to $1.73 a gallon, which is their highest outcome since April because refiners had to shut down too in preparation to the storm.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!