Oil rebounded on OPEC+ cuts and countered concerns about demand from China and the US

Oil rebounded on OPEC+ cuts and countered concerns about demand from China and the US

The oil prices they went up on wednesday stimulated by a rebound in demand in the United States and statements by the president of the Federal Reservel (Fed, central bank), which is still considering cutting rates this year, a measure that would encourage consumption.

The price of a barrel of North Sea Brent for delivery in May rose 1.12% to $82.96.

Meanwhile, a barrel of West Texas Intermediate (WTI) for delivery in April gained 1.25% to $79.13.

Oil: the data analyzed by the market

The commercial oil reserves in the United States they went up sixth consecutive weekthe US Energy Information Agency (EIA) reported this Wednesday, although the increase was less than expected by the market.

Reserves increased 1.4 million barrels (mb) in the week which ended on March 1, around half of the 2.7 mb that analysts expected, according to the consensus gathered by the Bloomberg agency.

This lower-than-expected increase is explained by greater use of refineries after the maintenance season, which allowed the facility use rate to go from 81.5% to 84.9%.

The demand for refined products also grew, 3.9% in one week.

Gasoline consumption in particular grew 6.4% in the weekmeasured by volumes delivered to the market, an implicit indicator of demand.

For Phil Flynn, of Price Futures Group, Operators took into account the increase in demand for refined products. It also noted a slight drop in production volumes in the United States, to 13.2 mb per day compared to 13.3 mb per day the previous week, a fact that also supports prices.

The prospect of a rate cut by the Fed, raised by Jerome Powell in Congress, also encouraged traders.

Powell’s statements also weakened the dollarand therefore made the barrel cheaper for investors in other currencies.

Source: Ambito

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