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.
