On Wednesday, crude oil prices closed just a little lower than a previous day despite an unforeseen US crude stockpile. It continues its 3-month uptrend rally, after it touched the -$40 mark, and is expected to reach $45 soon.
West Texas Intermediate, the New York Traded standard mark for US crudes, closed at $41.90 per barrel, just two cents below previous day. Also, on Tuesday, the WTI touched the four-month high of $42.40 a barrel and on Wednesday, reached a low of $41.41, 78 cents down, but closed only 2 cents down.
Meanwhile, Britain traded global benchmark for oil, BRENT, also closed only 3 cents downward, settling the day at $44.29. It also reached the four months high on Tuesday hitting $44.88.
Oil has shown a phoenix kind of growth, crossing +$40 from -$40, and is continuously striking upwards for three months. The reason for this growth is the constant demand for gas and its related products after the lift of lockdown in May. The speculations of the second wave of the virus and fear of restrictions on industries and business were also not able to break this rally. The virus has killed more than 146,000 and infected more than 4.1 million Americans.
In the meantime, the OPEC countries, along with some Russian allies, will decline the production cut to 7.6 million from August as compared to the previous 9.6 million barrel production cut daily, occurring since May.
The fall was expected because on Wednesday the EIA (Energy Information Administration) reported the inventory stock of US crude to 4.6 million barrels (for the week ending 17th July). In contrast, the expectation was only 2 million barrels. However, the report didn’t show any impact on crude prices.