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Reuters
Oil rose today, Wednesday, as prices received a boost from a financial stimulus package to mitigate the repercussions of the Corona virus in the United States, and from low crude oil inventories.
Brent crude futures rose 0.7 percent to $ 51.44 a barrel, by 08:03 GMT. US West Texas Intermediate crude futures rose 0.6 percent to $ 48.30 a barrel.
“Oil prices are still receiving support from the weakening US dollar overnight, and I finally found a friend in the American Petroleum Institute inventories report,” said Stephen Ince, chief global market strategist at Axi, a brokerage firm.
He added, “The American Petroleum Institute reported a much larger drawdown compared to the average forecast for crude stocks in the week ending December 25th.
The dollar fell to its lowest level in several years against many currencies, as traders set aside a new delay in providing stimulus money in the United States and kept their bets that providing additional financial aid is still likely.
Oil prices may gain more power with the start of virus immunization programs around the world in 2021, allowing countries to ease restrictions on movement and company activities.
Data from the American Petroleum Institute shows that crude oil inventories in the United States fell by 4.8 million barrels last week to about 492.9 million barrels, exceeding the expectations of analysts who indicated a 2.6 million barrel drop.
Source: Reuters
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