Oil prices are rising in hopes of better demand

Updates: 19.01.2021 17:13

London / New York – Oil prices are rising in hopes that government incentives will increase global economic growth and demand. Concerns about the re-closure of economies due to the covid-19 pandemic and the associated decline in fuel interest have gone into the background. Demand was also boosted by a weaker dollar, which makes oil cheaper for holders of other currencies.

Shortly before 5:00 p.m. CET, the price of Brent North Sea crude rose 1.8 percent to $ 55.72 a barrel. At the same time, US light oil WTI rose by 0.8 percent to $ 52.78 per barrel.

The International Energy Agency (IEA) said in its regular monthly market report today that a worsening pandemic will slow the recovery in oil demand. In the second half of the year, however, the recovery could support the expansion of vaccination and new stimulus measures. It also lowered the outlook for demand growth this year by 300,000 barrels per day.

“As the era of the Biden administration in the United States approaches, traders hope a quick positive effect on the markets will bring the promised stimulus package worth $ 1.9 trillion (nearly $ 41 trillion),” said Rystad analyst Bjornar Tonhaugen.

Oil prices in dollars per barrel (about 159 liters):

London – ICE Brent March 55,72 54,75
New York – NYMEX WTI February 52,78 52,36

Source: České noviny – hlavní události by www.ceskenoviny.cz.

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