An unusually cold winter pushed the crude oil high
The
Oil hit four-month high after Chinese record credit growth data supported
demand. The cold weather in the US
and the subsequent higher gas consumption are expected to push prices higher.
We will see the main facts that pushed the Oil to trade higher
since recent months.
First of all, the snowy winter in Northeast of America has increased concerns over oil supplies in the United States (the largest consumer of oil in the world), and pushed the prices high.
Secondly,
the rise of the Oil prices was also due to geopolitical concerns in Africa and Venezuela and political turmoil in South Sudan. In addition, Brent crude near the highest
level since Earlier this year, amid fears of a shortage of oil supplies from Libya and South Sudan.
In addition, Crude
oil continued to trade higher today on the back of stronger demand from the
world's largest economy, especially in the winter season, pushing the fuel
prices to the highest levels. West Texas Intermediate (WTI) edged up to $103 a barrel, while
Brent was trading above $110 a barrelFurthermore , The energy markets are adding to yesterday's gains, benefiting from dollar volatility amid poor US economic data ahead of tomorrow's Petroleum status report by the US Energy Information Administration (EIA), which could indicate a bigger drop in oil inventories due to winter demand, and probably supporting the recent surge in oil prices.
On
the other hand, the weekly petroleum status report was expected to be released on
Wednesday, but was postponed for tomorrow (Thursday) because of Presidents Day holiday on Monday, and the
investors are waiting for this report which will determine the real supply and
demand figures for the “Black Gold”.
