Crude oil

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Crude oil futures rose on Wednesday, January 30, 2019, due to the weaker-than-expected growth in domestic oil reserves and the United States sanctions against a Venezuelan state oil company.  Brokerage firms’ analysts and investment banks’ financial strategists believe that oil prices will continue to rise in the coming years.

The US has been penalizing Venezuelan company Petróleos de Venezuela SA this week, which has increased the likelihood of disruption to the oil supply of the Latin American country. Another significant factor contributing to the rise in the price of oil on the global commodity market was the US Federal Reserve System (FED) decision made on Wednesday, January 30, 2019, when interest rates in the US remained unchanged from December 19, 2018; ranging from 2.25 to 2.5% p.a.

March futures of West Texas Intermediate (WTI) rose by 92 cents (i.e. by +1.7% of the price) to 54.23 USD per barrel on Wednesday, January 30, 2019 which is the highest since November 21, 2018 for the most active contract. From the beginning of January 2019, oil prices have risen by 19%, which is the best January performance since 1985. The March futures of the European counterpart of the American crude oil WTI, Brent crude oil, rose by 33 cents (i.e. by 0.5% of its previous price) to $ 61.65 per barrel. Both of oils have consolidated and are maintaining the current business trend of the bull market and their prices have risen so far.

In the morning of January 31, 2019, at about 7:24 CET,  American WTI crude oil traded on the New Your Mercantile Exchange (NYMEX) commodity market at a value of $ 54.55 per barrel with a current daily growth of + 0.59% compared to its previous price. At the same time Brent crude oil traded on the Intercontinental Exchange Europe (ICE) commodity market with an increase of its daily price of +0.86% at a rate of USD 62.18 per barrel.

The price of gold on the commodity was even more pronounced. As of 31 January 2019, at about 7:36 CET, investment gold at the Central Commodities Exchange Center (CEC) in New York, which also includes Commodity Exchange (COMEX)  was valued at $ 1,324.40 per troy ounce, a daily increase of + 0.68%.

On Wednesday, The Energy Information Administration (EIA) reported that domestic oil stocks rose by 900,000 barrels last week. According to analysts surveyed by S&P Global Platts it should have risen by 3.1 million barrels. On Tuesday The US Oil Institute predicted a weekly increase of around 1.1 million barrels. “Fall in import helped prevent another significant surplus of oil stocks,” said Matt Smith, ClipperData’s director of commodity research.

“A significant drop in import of more than 1 million barrels per day has also helped mitigate a significant decline in refineries activity, which dropped by almost 600,000 barrels per day, leading to a slight increase in crude oil supplies.” Gas supplies last week fell by 2.2 million barrels and oil spills by 1.1 million barrels total, the EIA said. The S&P Global Platts survey expected an increase of 2.8 million barrels of gasoline. February futures for gasoline rose by 2.3% to 1.328 USD per gallon and February fuel oil by 0.05% to USD 1,898 per gallon.

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