Crude oil edges higher after Brexit trade deal, but wilts over 1.5% in the week

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Crude oil edges higher after Brexit trade deal, but wilts over 1.5% in the week

On Thursday, in a low-volume trading session ahead of the Christmas holidays, both US WTI (West Texas Intermediate) and UK crude futures’ prices inched higher after UK and EU Commission had reached a narrow Brexit trade accord, raising hopes of a recovery in demands.

Nonetheless, both crude oil futures’ prices had wrapped up the week more than 1.5 per cent lower as frets over a new pandemic-pathogen strain outbreak in Europe had prompted a swathe of major EU economies to stiffen up restrictions ahead of a busy holiday season, stalling a seven-week long streak of weekly percentage gains.

In point of fact, both Brent and US crude futures had opened up Thursday’s market in an upscaled note, however, both futures had pared earlier gains in European trading hours. Nonetheless, a late-session buying-spree following announcement of a Brexit trade deal which in effect would prevail a chaotic departure of Britain from the European Union, had helped oil futures close out the session modestly higher.

In actuality, the week’s faltering in crude oil futures’ prices was almost entirely driven by a growing pessimism among market participants over a couple of new prototypes of the pandemic-pathogen, while the UK strain had hit a number of EU countries and another South African strain had hit Nigeria alongside other African countries, eventually leading to a nosedive of crude oil futures’ prices despite a rollout of pandemic vaccines in a majority of G20 economies.

Crude oil inches higher, but reports weekly percentage decline

Citing statistics, in the day’s commodity market round off, US WTI crude oil futures’ prices rose by 0.50 per cent to $48.29 per barrel, while UK crude settled down the day 0.27 per cent higher to $51.29 a barrel.

On the week, US crude futures fell 1.6 per cent, while Brent crude futures’ prices clocked a weekly percentage decline of 2 per cent. Meanwhile, adding that the global oil market would likely to be catalysed by the extent of a global-scale pandemic outbreak over the coming weeks, President of Lipow Oil Association in Houston, Texas, Andrew Lipow said, “While the Brexit deal is supportive, the impact of COVID is the dominant driver in the oil market.

The oil market is waiting for the wider distribution of vaccines to get the public back on the road and in the air.