News
International Oil Prices Rebounded Strongly to above US$37 per Barrel
Affected by factors such as the passage of the revised economic stimulus plan by the U.S. House of Representatives, international oil prices rebounded on the 13th after falling for several consecutive days, with oil prices in the New York market rising by more than 10%.The U.S. House of Representatives passed a revised economic stimulus plan that day, and the Senate will vote on the plan in the evening. According to the plan totaling US$787 billion, the US government will invest US$3.75 billion in energy infrastructure design and construction. Market investors hope the plan will help the U.S. economy emerge from recession.
The day's economic data showed that the outlook for world energy demand remains bleak. The Eurozone economy shrank by 1.5% in the fourth quarter of last year. Compared with the same period last year, new car sales in Europe fell by as much as 27% in January, with sales falling to the lowest level in 20 years. Due to the surge in unemployment, the consumer confidence index released by the University of Michigan fell to a 28-year low.
After the U.S. Department of Energy and the International Energy Agency lowered their forecasts for global energy demand, the Organization of the Petroleum Exporting Countries (OPEC) also lowered its forecast for this year again in its monthly report on the 13th. The report said that global daily demand for crude oil will drop to 85.13 million barrels, a decrease of 580,000 barrels from the previous forecast.
Since the 6th, oil prices in the New York market have fallen for five consecutive days due to the increase in U.S. crude oil inventories, international agencies' successive downward revisions of energy demand forecasts, and the continued deterioration of the U.S. economy.
Market analysts analyzed that the main reason for the rebound in oil prices in the New York market that day was the large-scale liquidation of short-selling funds in the early stage. Since the 16th was a holiday in the United States, the New York market stopped trading, and the March crude oil options contract was about to expire on the 17th. A large number of early short-selling funds took profits, and some funds were transferred to other month contracts, resulting in a strong rebound in oil prices.
By the end of the day, the price of light crude oil futures for March delivery on the New York Mercantile Exchange rose by $3.53 to close at $37.51 per barrel, an increase of 10.39%. North Sea Brent crude oil futures for March delivery on the International Petroleum Exchange in London rose 16 cents to close at $44.81 a barrel.
