Crude oil reaches 2-week high on rising demand

Published on November 10, 2021 02:39 PM AEDT

Crude oil reaches 2-week high on rising demand — Image source: © Designer491 | Megapixl.com

Highlights

Crude oil reached two-week high levels on Tuesday.
Crude oil prices started rallying after the US Energy Information Administration (EIA) projected in its Short-Term Energy Outlook.
EIA has estimated that the average price for retail regular-grade gasoline is expected to decline in near future.

Crude oil prices jumped to two-week high levels on Tuesday on the back of robust economic recovery post-pandemic, boosting demand outlook. The prices were additionally buoyed as the US lifted travel restrictions in the country.

Crude oil prices started rallying after the US Energy Information Administration (EIA) projected in its Short-Term Energy Outlook (STEO) that the gasoline prices would decline in the next few months.

January delivery Brent Crude oil futures last traded at US$85.25 per barrel up 0.13%, whereas December delivery WTI crude oil futures traded 0.49% up at US$84.56 per barrel as of 10 November 2021 at 12:06 PM AEDT.

Source: © Batareykin | Megapixl.com

STEO estimates

Joe Biden, the US President’s administration stated that it would use price forecast in the STEO report to determine whether to release oil from its strategic reserves or not.

In the STEO, the agency has estimated that the average price for retail regular-grade gasoline is expected to decline from US$3.32 per gallon in November to US$3.0 in the initial quarter of 2022.

Bottom Line

Crude oil prices zoomed terrifically in 2021 on the back of strong demand recovery after an ease in pandemics. The most recent gains in the prices of crude oil came as the US has lifted the ban on travel restrictions.

Arpit Verma

Author

Arpit Verma - Research Analyst
292 Posts
Arpit is Research Analyst at Kalkine Media Pty Ltd. He has a wide experience of around 6.5 years in the oil & gas, mining, energy, and commodities domain. He has completed his M.Tech in Petroleum Engineering and B.Tech in Geoscience Engineering from ...

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