The oil price looks optimistic. What are the reasons?
Crude shows mixed performance in Asia ahead of API estimates
On Wednesday, crude showed mixed performance in Asia ahead of industry figures on American stockpiles.
American crude went up 0.19%, being worth $47.16 a barrel. As for Brent futures, they dipped 0.04%, trading at $49.59 a barrel.
Overnight, crude reversed earlier losses because of the American July holiday. A great number of traders closed their positions due to that holiday.
Oil inventories edged down by 2.833 million barrels with distillates supposed to earn 367,000 barrels, while gasoline stocks decreased 500,000 barrels.
Backing oil are security risks following North Korea's recent missile tests as well as the political crisis between Qatar and also an alliance of Arab nations headed by the United Arab Emirates and Saudi Arabia.
Crude has ascended for up to eight sessions in a row as part of an extended revival from multi-month minimums.
Support has emerged from reports of a recent sag in American output as well as a slowdown in US drilling activity.
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.
We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.