Stock Groups

Oil Up, Rises for Fourth Day as Supplies Remain Tight, China Completes Auction By Investing.com

[ad_1]

© Reuters.

By Gina Lee

Investing.com – Oil was up Friday morning in Asia, rising for a fourth day with the focus on tighter supplies and a strong appetite for riskier assets like crude oil alongside high hopes for the economic recovery from COVID-19.

edged up 0.16% to $77.37 by 12:34 AM ET (4:34 AM GMT) after hitting a two-month high on Thursday and closing at its highest level since October 2018. inched up 0.04% to $73.33 after closed 1.5% higher during the previous session, the highest since the start of August 2020.

Edward Moya (OANDA senior market analyst) said that crude oil prices seem to be heading higher, and risk appetite is running high.

Meanwhile, U.S. Energy Information Administration (EIA) data said that capacity utilization rates at U.S. East Coast refineries increased to 93%, the highest since May 2019.

released on Wednesday showed that inventories fell to the lowest in almost three years, with the damage from hurricanes Ida and Nicholas keeping draws elevated.

China’s first-ever public sale of its state reserve reserves saw a brief drop in black liquor earlier. According to people familiar with the auction, PetroChina, a state-owned refiner and chemical producer Hengli Petrochemical purchased four cargoes worth approximately 4.43 million barrels.

WoodMac analysts predicted that auction won’t have much impact on market, due to its size relative to China imports and China’s consumption.

Several members of the Organization of the Petroleum Exporting Countries, (OPEC+), and some of their allies have had difficulty increasing output as a result of COVID-19 delays or under-investment.

According to traders and analysts, U.S. refiners seeking to replace U.S. Gulf crude that was damaged by the storms had the option to go to Canada and Iraq, while Asian buyers switched to Russian or Middle Eastern supplies.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. Instead, they are determined by marketmakers. As such, the prices might not reflect market conditions and could be incorrect. Fusion Media does not accept any liability for trade losses you may incur due to the use of these data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.

[ad_2]