The oil price looks optimistic. What are the reasons?
Crude takes a breather after soaring to 6-week peaks
On Thursday, crude prices turned to be bit lower in European trade, pausing for breath having rallied to the highest value in six weeks in the previous session.
In New York, September delivery US West Texas Intermediate crude contract hit $47.26 a barrel, sliding 0.2%. In the previous session the benchmark hit $47.46 - its highest value since June 7.
Besides this, in London, September delivery Brent futures lost 4 cents trading at $49.66 a barrel, having hit a high of $49.81 yesterday.
On Wednesday, crude prices concluded higher, following data from the Energy Information Administration, which revealed a large sag in domestic crude as well as gasoline supplies.
American crude inventories edged down by 4.7 million barrels at the end of the previous week to 490.6 million barrels. It surpassed the expected sag of 3.2 million barrels.
Meanwhile, gasoline inventories slumped by 4.4 million barrels, contradicting hopes for a much more moderate tumble of 0.7 million barrels.
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.