Demand expectations continuous decline in inventories put pressure on crude oil to rise for four consecutive days, reaching a new one month high

April 16 news: after the optimistic monthly oil demand forecast the continuous decline of U.S. crude oil inventory, oil prices rose for four consecutive days, extending the highest closing price since mid March.

On April 15, West Texas Intermediate crude for May delivery on the New York Mercantile Exchange rose 31 cents, 0.5%, to $63.46 a barrel, rose 4.9% on Wednesday. At ice European futures exchange, Brent crude oil, the global benchmark, rose 36 cents, 0.5%, to US $66.94 a barrel in June. The contract prices of West Texas Intermediate Brent crude oil have risen for four consecutive trading days in recent months. Both benchmark indexes closed at their highest levels since March 17, according to Dow Jones market data.

"Optimism about demand is still a key factor... Recent data in the United States show that road traffic exceeds pre coronavirus levels," said Robbie Fraser, manager of global research analysis at Schneider Electric

Traders are also paying close attention to the ongoing nuclear agreement negotiations between Iran world powers. "The recent attack on Iran's nuclear related infrastructure is bound to complicate further negotiations on a U.S. return to Iran nuclear agreement," Fraser said. This attack is thought to delay Iran's schedule for developing nuclear weapons, but it also prompted Iran to seek uranium enrichment close to weapon level as a response. "

On April 14, the International Energy Agency raised crude oil demand expectations, the U.S. government reported that weekly inventories fell for the third week. In its monthly report, the International Energy Agency (IEA) raised its 2021 global oil demand forecast by 230000 barrels a day. It is estimated that 2020 to this year, the daily output of crude oil will increase by 5.7 million barrels to 96.7 million barrels. Meanwhile, the organization of Petroleum Exporting Countries on Tuesday raised its forecast for global economic growth to 5.4% 5.1%.

U.S. crude oil inventories fell by 5.9 million barrels in the week ending April 9, according to a weekly report released by the U.S. energy information administration on Wednesday. This followed a decline in oil supply in both weeks. The EIA data also showed that gasoline supply increased by 300000 barrels a week distillate stocks decreased by 2.1 million barrels.

On April 15, the EIA reported that in the week ending April 9, domestic gas supply in the United States increased by 61 billion cubic feet, slightly lower than that of S & P; P global Platts) survey analysts forecast an average growth of 65 billion cubic feet. However, the current supply is 11 billion cubic feet higher than the five-year average.

Manishraj, chief financial officer of velandera energy, said this week that "a lot of very optimistic data reliable institutions - EIA, IEA OPEC - supported the sharp rise in oil prices. However, traders have no illusions that OPEC + can easily add new supply, which will lead to a massive influx of markets. "

On Thursday, the New York Mercantile Exchange said gasoline prices rose 0.8 percent to $2.05 a gallon in May, while heating oil prices rose 0.5 percent to $1.90 a gallon in May. Meanwhile, natural gas prices closed higher after the US Energy Information Administration (EIA) reported a slightly lower than expected weekly increase in us natural gas supply. Natural gas rose 4 cents, 1.5%, to $2.66 per million BTU in May.

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Source: International Petroleum Network