Oil climbs as supply glut in focus amid U.S. Capitol attack

07.01.2021 - Evdokimov Roman
Oil climbs as supply glut in focus amid U.S. Capitol attack

Oil prices climbed on Thursday as Saudi Arabia, the world’s biggest oil exporter, agreed to slash production in the next two months and as U.S. crude inventories dropped.

Brent crude rose 0.7%, or 40 cents, at $54.70 per barrel following a 1.3% gain overnight. U.S. West Texas Intermediate rose 0.9%, or 43 cents, at $51.06 per barrel. The benchmark gained 1.4% on Wednesday. 

Saudi Arabia agreed to voluntarily slash 1 million bpd of output in February and March at the OPEC+ meeting earlier this week.

A weaker dollar, from which oil is priced in trading, also supported prices. U.S. crude inventories fell and fuel stockpile grew, according to the Energy Information Administration.

Crude stocks fell 8 million barrels to 485.5 million barrels in the week ended Jan. 1, contrary to analysts’ expectations for a 2.1-million-barrel drawdown.

On Wednesday, Trump supporters stormed the U.S. Capitol, prompting a lockdown. This happened after Vice President Mike Pence refused Trump’s demand to cancel his loss to President-elect Joe Biden.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?