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Crude Oil Update: WTI And Brent Crude Up By More Than 20%

Oil prices bounced back into the bullish territory, as the West Texas Intermediate (WTI) crude closed at $52.36 per barrel, posting a 23% rise since Christmas where it touched its 18 month low. Brent crude has also surged by 22% since reaching the basal.

The oil prices are in recovery due to the optimism surrounding OPEC+ led production cut. The Organization of Petroleum Exporting Countries in their previous OPEC meeting in December agreed to cut the output by 1.2 million barrels a day, in order to counter the production boom by the USA.

Saudi Energy Minister Khalid Al-Falih said that the production cut looks more than sufficient to stabilize prices. He added, “Responsible countries like the kingdom and other like-minded countries will continue to steward the market.” The trade talk between US-China also fuelled the investors’ enthusiasm.

February delivery of WTI ended the day up by 5.2 per cent ($2.58) and reach $52.36 on the New York Mercantile Exchange. Brent for March settlement also surged by 4.6 per cent to $61.44. The U.S. Energy Information Administration had earlier announced that domestic gasoline stockpiles jumped up by 8.07 million barrels while stores of distillates surged up to 10.6 million.

Read EquityPandit’s Crude Oil Outlook for the Week

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