Oil prices continue to rise on Thursday. The OPEC + alliance’s adherence to reduced production policy and falling US oil stocks pay off. Crude oil stocks in the US dropped to their lowest levels since March last year.
Brent crude oil futures reached their highest level since February 21, 2020, following the OPEC + decision. As of 0317 GMT, it rose 47 cents per barrel, or 0.8%, to $ 58.93.
West Texas Intermediate (WTI) crude futures climbed 49 cents, or 0.9%, to $56.18 a barrel after reaching its highest settlement level in a year on Wednesday.
OPEC + did not back down that they were determined to accelerate rebalancing of the energy market without delay. With the persuasion and adaptation of market actors, oil prices are rising.
The Organization of Petroleum Exporting Countries (OPEC) and its allies expanded its current oil production policy at a meeting on Wednesday. Demand is gratifying as producers’ deep supply disruptions and inventories decrease despite an uncertain outlook for improvement. By lowering the demand forecast, OPEC demonstrates its intention to keep surplus under control through production cuts throughout 2021.
The US Energy Information Administration said on Wednesday that U.S. crude oil stocks fell by 994,000 barrels last week to 475.7 million barrels.
At the same time, progress in the introduction of COVID-19 vaccines has been a key driver for oil prices. There are now several COVID vaccines that are effective enough to return energy traders’ pre-epidemic prowess.
The market is also backed by news that President Joe Biden is taking firm steps to further his $ 1.9 trillion coronavirus relief plan.