WTI (futures on NYMEX) is consolidating Wednesday’s 2% restoration rally from one-week lows of $46.16, now retaining shut to $48.50 levels.
The black gold takes obtain of the upbeat market mood, as merchants flock to higher-yielding assets such as oil, in anticipation of an drawing near Brexit breakthrough.
The urge for meals for riskier asserts is boding ill for the safe-haven US dollar, lending help to the USD-sensitive oil.
With the coronavirus vaccine progress, markets expect a faster restoration in demand for oil and its products. The same is mirrored with the useful resource of the draw in the US crude, gas and distillates inventories, which renders oil-positive.
“US crude inventories fell with the aid of capacity of 562,000 barrels in the week to Dec. 18 to 499.5 million barrels, the Energy Information Administration referred to on Wednesday,” Reuters reports.
Looking ahead, markets will hold a shut eye on the Brexit developments while furnish disruptions in Nigeria will be assessed for easy direction on the prices.