Oil futures continued to expand for the seventh consecutive session on Wednesday, November 25, adding around 1.8 percent to $45.71 after a rise of more than 4.3 percent a day earlier.
The oil market is also supported by hopes that with the advent of successful coronavirus vaccinations, the global economy will return to normal functioning. To date, the good results of the third stage of testing their vaccines have already been reported by three Western companies and are expected to be approved and placed into mass production soon.
The anticipation of the OPEC+ meeting, which could review the terms of the current agreement and delay the easing of output quotas in the 1-2 quarters of 2021, is another growth factor for oil prices. The meeting of OPEC + will be held from 30 November to 1 December.
In addition, the destabilization of the situation in the Red Sea, where an oil tanker was blown up off the coast of Saudi Arabia the day before, offers situational support for oil prices.
The optimistic figures from the EIA Agency on the US oil market are also worth mentioning. The country’s crude oil reserves decreased to 0.754 million barrels for the week ended November 20, against a rise to 0.768 million barrels a week earlier, although analysts predicted an increase of 0.127 million barrels.
At the same time, the stock of gasoline rose by 2.2 million barrels, compared to a rise of 2.611 million barrels a week ago, which was higher than the 0.614 million barrel consensus estimate and suggests a decline in the mobility of the US population in the sense of the pandemic.
Data on the number of active drilling rigs in the United States from Baker Hughes was also published on Wednesday. The indicator increased by 10 units to 241 units by November 25, after a fall of 5 units a week ago.