As the Fed stated that it will continue to observe the impact of the interest rate hike policy, it will enhance the economic growth prospects, internationalOil priceIt continued to rise on the 10th, setting the longest consecutive record in the past decade.
As of January 10, local time, the price of WTI crude oil futures for February delivery rose by 0.23 US dollars to close at 52.59 US dollars per barrel, an increase of 0.68%. Brent crude oil futures for March delivery rose $0.24 to close at $61.68 a barrel, or 0.39%.
WTI prices rose for nine consecutive trading days, setting a record for the longest consecutive gains in nearly a decade, while Brent oil prices have risen for eight consecutive trading days. Currently, WTI prices have risen by 23% compared to Christmas Eve, and Brent has risen by more than 20%. According to the usual definition, stocks and commodity prices continue to rise by more than 20%, which is a bull market. Both are currently in this range.
The background of this bull market is the implementation of the production reduction agreement between the Organization of Petroleum Exporting Countries (OPEC) and other oil-producing countries, and the rise of the previous trading day is due to the speech of Federal Reserve Chairman Powell.
On January 10, local time, Powell said that the Fed will "patiently" observe the impact of international risks on the US domestic economy before adjusting interest rates again. He also said that the Fed will significantly reduce its balance sheet.
TDBrokerProduct consultant Daniel Ghali said that Powell’s comments made investors more reassured. "Since the market has fallen in a cliff-like manner, we have seen a lot of positive signals. With the promise of OPEC, the prospects for the crude oil market are far less pessimistic than some expected."
Ghali said that central banks around the world are recovering stimulus policies and increasing market volatility, and investors should adapt to this volatility. At present, the international oil price is still about 30% from the high point of October last year.
The growth of US fuel oil stocks did not affect oil price increases. According to a report released by the US Energy Information Administration (EIA), as of January 4, US crude oil inventories decreased by 1.68 million barrels, butgasolineSuch refined products have increased dramatically.
Saudi Energy Minister Falih said on January 9 local time that the plan to reduce production by 1.2 million barrels per day promised by major oil producers would be sufficient to balance the market. He added that if the current reduction in production proves insufficient, he "does not rule out the possibility of taking further action."
“The pessimism of market participants was too high at the end of last year, so we expect oil prices to rise,” said Eugen Weinberg, director of commodity research at Frankfurt Commercial Bank. “But, in order to further increase prices, OPEC must take decisive action.”
(Article source: 澎湃News)