The stock market has been struggling as of late, as it continues to fall as a result of the fiscal plans that many in office make. Even if it is able to see a rally of one of the major stock options like the NASDAQ it is also quick to see a major downfall in just two or three short days.
However, with demand for oil refining growing in the USS, many believe that it is only a matter of time before the stock market starts seeing a major turning point. Investors in the stock market are really looking for a win right now, and this might just be the catalyst that they are looking for.
Oil prices in the stock market managed to increase by 3% by Wednesday. This increase, given the bearish market conditions of the market right now, was seen as a light at the end of the tunnel for many investors who were holding out for something big.
Why is Stock Price Increasing?
The major increase comes as a result of the crude exports for the US shooting up exponentially as many of the refiners in the country produced much more than expected.
These refineries kicked into high gear and managed to significantly increase their output compared to the same time last year. And as futures for various crude oil stocks increased, many investors are holding out hope that this improvement will eventually radiate throughout the market.
Futures Managed to Increase
Following the increased supply to meet the increased demand, the first thing that saw a rise were various future options. Brent Crude future in particular saw a rise as high as 2.6%, which made the price per barrel go as high as $95.95.
However, these were not the only futures that managed to increase in such a short span of time. WTI crude oil also saw an increase, but it managed to rise by much higher at a rate of 3.3%. This rise put the price per barrel of its oil up to $88.18.
Weaker US Dollar Adds to Bullishness
Another factor that added to the bullishness of the current market was the dropping price of the dollar. As the dollar sank, more companies could buy the crude oil at a cheaper price compared to the rest of the international market.
Therefore, there was even more demand for American refined crude oil, as refiners were able to sell to interested parties at a higher price.
In just a week, crude oil stocks managed to rise by an astonishing 2.6 million barrels, which was much higher than expected. However, the industry figures showed a build of 4.5 million barrels, which left many analysts and experts very puzzled.
