With the current United States crude supply abruptly slows, the price of oil went up by 2% which is considered its longest stretch of daily gains in more than 5 years. Brent crude futures went up by 91 cents or 1.9% to $49.68 a barrel; in addition, the price boosted 5.2% last week for the first weekly gain in six.
The U.S. crude futures closed up to $1.03 or 2.2% to $47.07 a barrel, which is considered an almost one-month high. In accordance to this, the U.S. crude futures trading volumes were surprisingly low a day before the United States Independence Day holiday.
According to Commerzbank senior analyst: Carsten Fritsch, as he cited a 100,000 barrel per day drop in the U.S. output due to tropical storms and maintenance, that these temporary factors compensate the sharp increase the Organization of Petroleum Exporting Countries oil production in June. He also said that it’s all about market sentiment.
In accordance to this, bets of investors in Brent crudes and futures have risen up against a sustained price rise to the highest level on record in the latest week. This is after the United States government data showed crude supply fell in for the first time since January.
In addition, Standard Chartered Singapore wrote a note on Monday that says that they (Standard Chartered) think the fall in prices have caused U.S. output growth to slow.
They also added that revisions for May and June will confirm that supply is growing at a suggestively more modest rate than the market has believed up to now.