Oil prices collapsed on Tuesday. One day later, however, things clearly improved again, and the losses have been completely made up for. There was a reason for that.
Oil prices rose sharply on Wednesday, making up for the previous day’s slump. Until recently, the quotations were able to expand the profits from early trading vigorously.
A barrel (159 liters) of Brent North Sea oil cost $ 63.67. That was $ 2.88 more than the day before. The price of a barrel of West Texas Intermediate (WTI) branded American crude rose by $ 2.80 to $ 60.56.
Oil prices collapsed on Tuesday and reached their lowest level since early February. The main reason was concerns about the demand for crude oil due to rising corona infections and new restrictions, especially in Europe. Both are weighing on the economic outlook.
Supply concerns: container ship blocks Suez Canal
On Wednesday, however, supply concerns outweighed the oil market again. The trigger is the temporary interruption of an important transport route for the oil trade, after a cargo ship ran aground in the Suez Canal and the important shipping route between Asia and Europe was blocked.
A significant part of the energy transport from the Middle East to Europe and the USA runs through the canal. Deliveries from the North Sea to Asia are also affected in the opposite direction.
Against this background, a renewed increase in oil reserves in the USA could not curb oil prices. According to the US government, inventories rose 1.9 million barrels to 502.7 million barrels in the past week. Analysts had expected a slightly lower increase.
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Oil prices rise significantly previous days slump