On Wednesday, both US and UK crude oil futures’ prices had rallied over 4 per cent, stretching out their gains from the previous session following a steep headwind stomached earlier in the week, as a growing appetite for riskier assets amid hopes of a solid economic recovery had helped investors undermine an unexpected increase in US crude inventories.
In point of fact, since plummeting more than 7 per cent in a single session on Monday following reveal of an OPEC+ decision to boost output from August, crude oil futures were gathering momentum over prospects of a rise in demand outlooks, imperatively prompting investors to cash in on the black gold futures.
Aside from that, Wednesday’s havoc-scale rise in crude oil futures’ prices came forth despite a strong build-up in US crude inventories, as the US EIA (Energy Information Agency) had reported earlier in the day that US crude stockpiles soared as much as 2.1 million barrels last week to 439.7 million barrels, while industry analysts were anticipating a decline of 4.5 million barrels.
Oil gains 4 per cent as demand optimism rekindles
Citing statistics, in the day’s commodity market round off, UK crude climbed 4.2 per cent to $72.73 a barrel, while US West Texas Intermediate crude oil futures’ prices jumped as much as 4.6 per cent to settle down the day at $70.30 per barrel.
Meanwhile, adding that the global demand would likely to average at around 99.6 million bpd as early as by August, up about 5.4 million bpd compared to April, JPMorgan analysts wrote in a client note, “We only see 4Q21 demand recovering another incremental 330,000 vs a normalised 2019 baseline as colder weather sets in for the northern hemisphere and peak travel season is behind us”.