As per the latest reports, a rise in the prices of oil was observed for two consecutive days where the second day was Friday, July 9, 2021. According to analysts, the rise in the price of oil was experienced due to the falling of the United States inventories.
Furthermore, another reason for the rise in the price of oil was due to the demand that increased from two major countries from Asia, Indian and China. The demand from these two countries ended up supporting the rise in the price of oil.
According to stats, the price of Brent Crude oil futures went up by 1.93%, adding $1.43 to the price of oil. After the increase, the final price of the Brent Crude oil is at $75.55.
On the other hand, there are US West Texas Intermediate futures, which also experienced an increase in the price. The data shows that the US Texas Intermediate futures ended up experiencing a 2.2% increase, adding $1.62 to the price of the oil. As a result, the current price of the US Texas Intermediate futures is hovering at $74.56.
At present, the market is dealing with the historic drops that were experienced with the US oil inventories. Furthermore, the Iranian oil prospects that were dimming at one point have also started making a comeback
The above observation and reason behind the rise in the price of oil were shared by Price Futures Group’s senior analyst in Chicago, Phil Flynn.
The data shows that the price on both sides of the regions demonstrated different prices. At the beginning of the week, the prices of oil experienced a downfall and struggled to keep their heads high. This was mainly because of the oil deals that failed several time between OPEC+ and their allies.
Since 2019, the stock prices for gasoline and US Crude oil experienced a drop. On top of that, the demand for gasoline has also experienced an all-time high since 2019. This information was shared by the Energy Information Administration (EIA) of the United States on Thursday, July 8, 2021.
The Energy Information Administration has shown confidence and firmness in predicting that the economy is now picking up the pace. As the economy continues to stabilize, the prices of US Crude Oil and Gasoline would observe a significant yet reasonable increase.
According to the market analysts, the oil markets controlled by the United States are currently trading very tightly. The industry has already incurred many losses and there is only one way of stopping the losses. The analysts have predicted that if the OPEC+ is successful, then the US market would be able to recover from the losses.