The oil price looks optimistic. What are the reasons?
Oil edges up on signs of tighter market
On Wednesday, crude prices rallied, soaring for a third day, following signs that markets are actually tightening after years of oversupply. However, the outlook for 2018 was still unclear.
American West Texas Intermediate crude futures gained 0.3% from their previous settlement. Brent crude futures hit $56.69, soaring 0.1% from their previous close.
Traders told that on Wednesday they would consider US fuel inventory data, while on Thursday they will closely watch indicators on price direction.
The American Petroleum Institute is expected to publish its data for the previous week on Wednesday at 2030 GMT, while the US Department of Energy's report will be unveiled on Thursday.
As financial experts stressed, short-term conditions seemed tightening.
Price support is also ensured by economic surge, which the International Monetary Fund forecast late on Tuesday would account for 3.6% worldwide in 2017 and 3.7% next year.
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.