Oil prices gain more than 2 per cent as US inventories decline

by   |  VIEW 809

Oil prices gain more than 2 per cent as US inventories decline

On Friday, the US and UK crude oil futures’ prices had extended their gains into a second straight day as the global commodity market appears to be reacting to a sweeping decline in US crude inventories amid a sharp shoot-up in demands with activities in major Asian economies such as India and China spurring up.

In point of fact, Friday’s large-scale gains in crude oil futures’ prices were almost entirely prodded by a historic decline in US crude oil inventories alongside a growing hindrance in the revival of Iran 2015 nuclear treaty amid a landslide victory for Ebrahim Raisi in the country’s Presidential election, who happens to be a religious fundamentalist with stronger tie-up with Supreme Leader Ali Khamenei.

Nonetheless, despite Friday’s havoc-scale upsurge in crude oil contracts, oil prices on both sides of the Atlantic ended the week almost unchanged despite a substantial scale of swing on a frequent basis. Oil prices fell earlier in the week shortly after the OPEC+ member states had called off a policy meet without any decision following a clash between UAE and Saudi over a proposed output curb at least until end-2022.

Nevertheless, oil prices had received the biggest boost in the week on Thursday, while the US EIA (Energy Information Administration) was quoted saying that the US crude and gasoline stocks slid sharply last week with demands reaching to their highest since 2019, remarking an increase in strength in the economy.

Oil prices gain, but end week almost unchanged

Quoting statistics, in the day’s commodity market wind-down, UK crude futures’ prices added 1.93 per cent to $75.55 per barrel, while US West Texas Intermediate (WTI) crude oil futures’ prices gained 2.2 per cent to $74.56 a barrel.

Both oil contracts ended the week almost unchanged. Meanwhile addressing to a histrionic drop in US crude oil inventories alongside fading prospects of a return of Iranian crude, a senior analyst at Price Futures Group in Chicago, Phil Flynn said, “The market is coming to grips with the historic drop in U.S. oil inventories, and dimmed prospects of Iranian oil returning to the market.