Oil prices rose on thursday:il prices rose on Thursday, extending the previous day's rally, driven by optimism over US fuel demand following an unexpected drop in crude and gasoline inventories, while reports that OPEC+ may delay a planned output increase offered support. Brent crude futures gained 35 cents, or 0.5%, to $72.90 a barrel. US West Texas Intermediate crude futures climbed 32 cents, or 0.5%. According to Qatar News Agency, Both contracts rose more than 2% on Wednesday, after falling more than 6% earlier in the week on the reduced risk of wider Middle East war. The unexpected drop in inventories has sparked renewed confidence among investors regarding the demand for fuel in the US, a key market influencing global oil prices. Reports that the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, may delay their planned output increase further supported the price surge. This optimism surrounding US fuel demand is seen as a stabilizing factor in the volatile oil market, which had been shaken by geopolitical tensions. The recent developments suggest that the market may be adjusting to a more balanced supply-demand scenario, providing some relief to stakeholders concerned about supply disruptions. The report of a potential delay in OPEC+ output increases indicates a strategic approach by the oil-producing nations to maintain price levels amid varying global economic signals.
Wednesday, November 06, 2024