Crude oil rising on US weak supplies

Crude oil rising on US weak supplies

05. 22. 2014

The oil prices continue to rebound against the US dollar

*WTI Crude Oil rose above to $104. a barrel 
*Brent Crude Oil rose above $110  a barrel
the main facts that pushed the oil higher are the following.

*1 *  The decrease  of  US oil supplies :

Crude oil prices jumped after the release of the American Petroleum Institute  weekly report which showed the decline of supplies  to 10.3 million barrels to reach  380.4 million barrels, while the analysts   forecasted an increase  about   800 thousand barrels. And this is a sign of rising demand in the country's largest oil consumer in the world. In addition, the increase of demand for Commodities which are considered as risky assets is supported by the FOMC Wednesday 21st outcomes as the Fed claimed that the policy makers will continue to support the US economy.

*2 *The Improvement of China's manufacturing growth :

China Manufacturing Purchasing Managers' Index (PMI) rose to 49.7 in May from April's final reading of 48.1, reflecting further recover in the world's second-largest economy., and as a result the demand for oil in the second oil consumer in the world has been increased.

*3* The decline of Libya Oil production:

The crude oil recovered on the continued tensions in Libya, which represents the largest oil reserves in Africa.

And today witnessed heavy fighting and strong explosions in the Libyan capital Tripoli after last Sunday when armed groups burst into the Parliament in the worst violence since many months ago.
Furthermore, The National Oil Corporation has claimed that the major Western oil fields in the country remained closed for more than a week, after the Libyan government claimed that  the protesters prevented the flow of oil pipelines.

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