Oil continues to rise thanks to the stimulus optimistic $ 2 trillion worth of US
The crude oil futures contract continued to rise on Wednesday (25/3), remove some momentum earlier decline as optimism surrounding economic stimulus package worth US $ 2 trillion finally help eased some concerns about the increase in supply in the context of Russia and Saudi Arabia participated in a war of oil prices, MarketWatch reported.
Meanwhile, weekly data from the Energy Information Administration, the US (EIA) showed domestic crude stocks rose less than forecast, but also marks the 9th consecutive weekly gain. Data also showed that production of gasoline in the week fell sharply, pushing up the price of futures contracts of this fuel.
Ending the trading session on Wednesday, crude oil contract, light sweet WTI delivery in May on the Nymex advanced 48 cents (approximately 2%) to 24.49 USD / barrel, after fluctuating at a low of 22.91 USD / barrel.
Brent crude contract on the London Metal Exchange in May of 24 cents (or 0.9%) to 27.39 USD / barrel.
Oil found support after the progress achieved stimulus the US economy and a report from the Wall Street Journal said the US plans to put pressure on Saudi Arabia to curb rising yields.
Legislators Republicans and Democrats together Authority President Donald Trump has reached an agreement on the bailout package worth $ 2 trillion to rescue the business and the American people when the economy stalled as a result of the pandemic global COVID-19. The agreement still must pass the vote in both the Senate and House of Representatives. Expectations regarding the agreement has helped support oil prices and stocks jumped on Tuesday (03/24).
However, global demand is still influenced by the translation COVID-19 along with the wave of crude oil is pumped into the market by the war oil prices between Russia and Saudi Arabia continue to curb the rise of the right oil futures contracts.
JBC Energy said base case will see excess supply of crude oil and 20 million barrels / day in April and May next.
On Wednesday, oil prices had little reaction to data from the Energy Information Administration, which said US crude supplies rose 1.6 million barrels in the week ended 03/20/2020, sharply lower than the forecast 2.5 million barrels from analysts participated in the survey of Platts, and in stark contrast with forecasts at 1.25 million barrels of American Petroleum Institute (API).
Besides, the EIA also said gasoline supplies fell 1.5 million barrels and stocks of distillates lost 700,000 barrels last week. Both 2 are lower than the forecast 2.4 million barrels of gasoline fell 1.6 million barrels and distillates from the Platts survey.
US gasoline output fell to 8.96 million barrels / day in the week ended 03/20/2020, from 9.97 million barrels / day in the previous week, EIA data showed.
Also during the session on Wednesday, gasoline delivery in April contract climbed 23.2% to 54.68 cents slope / gallon. Heating oil delivery contracts plus 1.6% in April to US $ 1.0978 / gallon.
Natural gas delivery contract advanced 0.4% in April to 1,659 USD / MMBTU.