“Saudi Arabia in particular is ensuring through its additional voluntary production cuts that the market is undersupplied if anything”
“We advise investors with a high risk tolerance to be long Brent or to sell its downside price risks”
Crude Oil Benchmark Hits 11 Month High!
Crude Oil Benchmark hit 11-month highs of $ 57 a barrel on Tuesday as tighter supply and expectations of US inventory decline as a result of escalation in coronavirus cases globally.
Saudi Arabia plans to lower production by another 1 million barrels per day (bpd) in February and March to stop inventory building. The impact is expected to show on the US supply reports, over a month of decline in crude oil stocks.
Dated Brent crude is up 80 cents, or 1.4%, to $56.44 a barrel, previously $56.75, the highest level since February. US. West Texas Intermediate (WTI) closed 1.8% up, or 96 cents, which was at $53.21 a barrel.
“Saudi Arabia in particular is ensuring through its additional voluntary production cuts that the market is under supplied if anything,” says Eugen Weinberg from Commerzbank.
The Saudi cut is part of a deal called for by OPEC where most of producers will keep production stable in February. Record cuts by OPEC and its supporters in 2020 helped part of the oil market recovery from record lows in April. Some oil analysts believe they see more gaines.
“We advise investors with a high risk tolerance to be long Brent or to sell its downside price risks,” said Giovanni Staunovo of UBS in a report on Tuesday.
Oil also has the expectation of a decline in US crude oil reserves. They assume that crude oil stocks will be lost by 2.7 million barrels in the following week in a row.
The first of two supply reports this week from the American Petroleum Institute is due at 21:30 GMT.
The prospect of exercising the impulse in the United States gave further rights. President-elect Joe Biden, who will take office Jan. 20, has “trillions” in pandemic aid budget.
This is the reason that the rights of coronavirus rights to the whole world who have the rights.
In China the authorities imposed new restrictions on the Beijing area on Tuesday, and Japan will implement a state of emergency beyond Tokyo.