© Reuters. Why do oil prices continue to make strong gains?
Arabictrader.com – Oil prices recorded a noticeable increase in the passage of trading today, Tuesday, due to the state of optimism in the markets about the recovery of global demand on the calm pace of the outbreak of the Corona virus in many countries, in addition to optimism about the approval of the US stimulus package, which supports the recovery of the American economy from the repercussions of the outbreak of the virus The new Corona.
US crude futures rose 0.71% to $ 58.38 a barrel. At the same time, crude futures rose 0.66% to $ 61.10 a barrel.
And crude oil prices rose during today’s trading, Tuesday, due to optimism about the recovery of global demand for crude oil during the coming period, coinciding with the calm pace of the outbreak of the new Corona virus in many countries, as the number of infections subsided in Germany, Britain, the United States, and other countries, which is What supports the easing of the closure restrictions soon and the recovery of demand for crude oil.
In addition, the state of optimism about the recovery of global demand for crude oil is increasing, coinciding with the possibility of passing a huge US stimulus package, estimated at about $ 1.9 trillion, which would support the recovery of the US economy strongly from the repercussions of the dangerous coronavirus, and the US demand for oil is increasing. Crude this year, which reinforces the rise in oil prices in the markets. The United States of America is one of the largest consumers of crude oil in the world, and the increasing US demand for crude oil supports the rise in oil price levels clearly in the markets. Therefore, markets will monitor the release of US crude oil inventories data this week to look at the strength or weakness of US demand for crude oil.
In addition to the previous reasons, the commitment of the Kingdom of Saudi Arabia to a voluntary reduction in crude oil production starting this February by about one million barrels per day also contributes to supporting the balance of the markets, especially with the commitment of the OPEC + alliance to reduce the global supply of crude oil to get rid of the oversupply of oil in the market and maintain price levels. The current oil and the market equilibrium due to what happened in the last year of the decline in crude oil prices to record levels with the occurrence of an overstretched oil supply in the markets.
With regard to other energy sources, gasoline contracts declined during Tuesday’s trading by 0.33% to record $ 1.6725 a gallon. Meanwhile, contracts decreased by 2.32% to record $ 2.816 per million thermal units, while contracts rose by 0.13% and recorded about $ 1.7549 per gallon.
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