The oil price looks optimistic. What are the reasons?
Crude ticks up, gasoline drops as refineries get back after Harvey
On Tuesday, crude prices ascended because demand picked up and American refineries started resuming operations.
Meanwhile, gasoline futures kept dropping because initial concerns of a serious supply crunch relieved.
October delivery West Texas Intermediate crude futures hit $47.55, soaring 0.5%. On Monday, American crude futures didn’t settle due to the Labor Day holiday in the USA.
Meanwhile, November delivery Brent futures sagged 0.2% in London, being worth $52.25 a barrel.
October delivery gasoline futures lost 1% trading at $1.674 a gallon, which is close to levels observed before storm system Harvey affected the US Gulf coast.
Last Thursday, prices leapt to a two-year maximum of $2.139 on concerns of supply shortages.
Pipelines, crude refineries and shipping channels across Texas and Louisiana started a gradual return of operations after a week ago Harvey impacted the heart of the American energy industry.
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.