Oil prices recovered on Monday on the back of the US government’s decision to buy to replenish supplies and signs that demand is not falling, AFP reported.
The price of a barrel of Brent North Sea oil for February delivery increased by 0.96% and closed at $79.80.
US West Texas Intermediate (WTI) crude for January delivery rose 1.21% to $75.19.
For Phil Flynn of the Price Futures Group, the decision announced on Friday by the United States to begin increasing its so-called strategic reserves (SPR) has once again “secured a bottom” for prices.
Since the start of September 2021, President Joe Biden’s administration has extracted 239 million barrels from oil reserves, nearly 40% of the total (38.4%), in an effort to lower crude oil prices as well as gasoline prices.
Strategic reserves are now at their lowest level since January 1984.
The first auction concerns three million barrels.
As for Phil Flynn, despite fears of a slowdown in economic growth, some indicators point to continued steady demand.
In particular, he cited data released on Monday that showed global demand remained significantly higher than last year.
The analyst also believes that the factor supporting prices is the prospect of an acceleration of the Chinese economy.
Source: Hot News
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