Oil prices are higher on Wednesday. That happened after the data of industry showed the United States raw commodity unexpectedly slipped down. That condition was seen last week. There is also an update from China so far.
It is the second-largest country that consumed oil. Based on the information and data, the coronavirus cases there were not raising too much. The daily report is on its lowest level. That condition is great and brings optimism for the market participant.
Furthermore, this situation also makes a hope of the better demands is stronger. The COVID-19 cases which could be handled properly mean that the economic condition may be stable as soon as possible. That is beneficial for a world market.
Updates of Oil Prices
The Brent raw oil increases by about 0.3% or 19 cents. So, now it is becoming $ 56.10 per barrel. The WTI is also higher now. It rises by 20 cents or 0.4%. That is sold at the price of $ 52.81 per barrel at the present time.
Meanwhile, an organization called the “American Petroleum Institute” reported that the bare oil stock in the United States as the biggest consumer in the world is slipped. That is decreasing by about 5.3 million per barrel.
The situation happened in a week until 22 January 2021. That amount is lower than what the analyst expected like what it is said in a vote from Reuters for an increasing number. The amount is for about 430.000 barrels.
However, data showed that gasoline stock is increasing. It rises by 3.1 million barrels and that is more than what people are expected. Besides gasoline, it seems that other kinds of fuels are also having the same trend.
The Increasing Fuel Stock
The data from API clearly stated that the distillate fuel stock which includes solar and heating oil is increasing by 1.4 million barrels. That is higher if you compared them with the expectation of 361000 withdrawal. The mill operation is also the same.
It is decreasing by 76000 barrels per day. The market participants are in the wait and see moment right now. They want to see how the lockdown situation, especially which are applied in the developed country in several weeks and months.
They want to know how good those countries are in launching the COVID-19 vaccine. You know that nowadays, several countries have been injecting the vaccines to their people. Some brands of vaccines are used with the high effectiveness.
Those are like the Sinovac, Pfizer, BioNTech, and many more again. At the present time, the world is like waiting about the good result of this innovation and solution. It is hoped that the condition will be better and more normal soon.
Factors That Support the Price
The increasing price in the market is supported by the reducing concern due to a sharp decline along the Chinese New Year. That biggest importer in the world is now in a better condition since the case of coronavirus is decreasing.
The legal data showed that 75 new cases of COVID-19 in that country were confirmed on Wednesday. It becomes the lowest increase since the 11 of January. That is good news from China itself and for the oil sector in the global market.
Before, the hundreds of people in China go to somewhere during the holiday season along the Chinese New Year. However, the pandemic really changes everything in that place. Meanwhile, the government also makes some rules about it.
They recommend people for not going to anywhere. It is a step to support the effort for decreasing the coronavirus infections lately. The Chinese Transportation thought the passengers’ journey may decrease up to 40% this year if compared to the year of 2019.
