With the support of the International Monetary Fund (IMF), the price of oil on the international market has risen to more than $63. It is estimated that the government’s stimulus measures will greatly promote economic growth this year.
In the London market, the price per barrel rose 56 cents from the previous trading day to $63.28. In the US market, the trading price per barrel rose 46 cents to $59.79.
The International Monetary Fund (IMF) announced on Tuesday that the government’s unprecedented spending to combat covid-19 will increase global economic growth this year to 6%. This will be the strongest growth since the 1970s.
Analysts at ANZ Bank said: “Optimism about the outlook for the global economy has improved confidence in the crude oil market.”
Yesterday’s “constructive” talks between Iran and world powers and an agreement on the establishment of a working group (which should discuss the possibility of resuming the 2015 nuclear agreement) hindered price increases.
This may eventually cause the United States to lift sanctions on Iran’s energy sector and resume oil exports, thereby increasing market supply.
Stephen Brennock of the brokerage PVM explained: “Iran is the biggest risk to the oil market in the direction of the biggest supply.”
The latest US report also expects price increases, indicating an increase in energy inventories last week.
Three market sources quoted the American Petroleum Institute (API) as saying that US crude oil inventories fell by 2.6 million barrels last week, but gasoline inventories increased by 4.6 million barrels, and distillate inventories increased by 2.8 million barrels.
Official data will be released on the same day.
In addition, the Organization of the Petroleum Exporting Countries (OPEC) announced on its website this morning that the price per barrel of its member reference basket was $61.33 on Tuesday, down 37 cents from the previous trading day.