The oil price looks optimistic. What are the reasons?
Crude prices tack on in Asia
On Friday, oil soared in Asia with market sentiment backed by an everlasting rebalance of demand and supply, not to mention geopolitical tensions as for rumblings for Kurdish independence in Iraq.
Additionally, later on Friday market participants are waiting for the Baker Hughes rig count for the anticipated weekly update on the number of American rigs drilling for crude.
In New York, November delivery crude futures grew 0.04% reaching $51.58 a barrel. In London, Brent futures soared 0.02% hitting $57.27 a barrel.
Overnight, oil settled lower because investors happened to unwind some of their bullish bets on oil, although market sentiment on crude was still upbeat reacting to inventory data on Wednesday demonstrating a sudden draw in crude supplies.
Crude dived because market participants took profit on the recent soar that has seen crude prices reached multi-month peaks on hopes that higher global demand would push the market closer toward rebalancing.
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.