Prior to the Federal Reserve’s anticipated decision to raise interest rates, oil prices rose today, Wednesday, to recover from a decline earlier in the session. This increase was fueled by the reduction in US crude stocks and the recovery of refinery activity in anticipation of the demand for heating fuel in the coming winter.
Costs of crude oil
By 1601 GMT, the price of Brent crude grew by $1.74, or 1.8%, to reach $96.39 per barrel, while the cost of US West Texas Intermediate crude increased by $1.
Before the next announcement of the Reserve Council meeting, the market is likely to remain stable around 95, or 2. 2%, to 90.31 dollars per barrel. It is anticipated that the interest rates will increase by 75 basis points for the fourth time.
US oil reserves
US crude oil stocks fell by 3. 1 million barrels last week, according to federal data. Before the rise in demand for heating fuel, the gasoline stocks fell while the distillation products somewhat rose.
In an interview with “Arabic,” the managing director of Manar Energy Company Jaafar Al-Taie commented on the movements of the oil markets, asking “If China’s abandonment of Corona’s restrictions is a sign of expectations for the recovery of oil.” Analysts are concerned that American strategic stockpiles are about to run out, excluding a source of supplies and increasing market scarcity.
Al -Ta’i added, “If we witness a recovery in the demand for next year, we will face a crisis regarding the offer due to the decline in the volume of capital spending in the sector. ” He emphasised that Saudi Arabia and the UAE are dedicated to capital spending, in contrast to other OPEC and non-OPEC producers that lack clear strategies and some of those who are experiencing crises.
Following the government judgement, today’s trading on Wednesday, November 2
About Author
