Oil picked up on Thursday on strong US economic data, falling oil stocks and the decision to stick to OPEC +’s production cuts, but a stronger US dollar limited gains.
Brent crude oil, which saw the highest level of $ 59.04 since February 21, increased by 38 cents to $ 58.84.
West Texas Intermediate (WTI) crude oil rose 54 cents to $ 54, after hitting a one-year high at $ 55.69 on Wednesday.
Strong US factory data and rising unemployment figures are helping oil prices soar. The US Department of Commerce said factory orders rose 1.3% in November, surpassing economists’ expectations and rose 1.1%. New applications for Americans’ unemployment benefits dropped last week, according to data from the Ministry of Labor. Investors also expect positive data from the government’s comprehensive monthly employment report on Friday.
The market got stronger with news that Biden took the first steps to advance its $ 1.9 trillion coronavirus relief plan.
The rising US dollar, which typically moves in the opposite direction with oil prices, slightly slowed the rise in the oil price. The dollar saw a two-month high against the basket of other currencies.
At the meeting held on Wednesday, OPEC and its allies are pleased with the pace of depletion of stock levels achieved as a result of the cuts. As the COVID-19 pandemic continues, there is an impression that uncertainty has turned into an expectation of a recovery in demand. The oil supply pact is being extended at current levels.
Also Wednesday, government data showed last week that US crude oil stocks unexpectedly fell to 475.7 million barrels, their lowest level since March.