The barrel of oil starts the week in the green:
The beginning of the week marks the beginning of investors' enthusiasm for black gold, with oil prices rising in the various markets. In fact, both Brent and WTI prices rose by 1% yesterday, with prices at $56 and $53 respectively.
Although the Covid-19 pandemic doesn't seem to be showing any real signs of slowing, the price of oil is currently supported by positive announcements that were numerous on Monday and have rather oriented the markets towards buying.
There was much encouraging news coming out of the market:
Among the news that currently supports the price of black gold is the $1.9 trillion U.S. economic stimulus package that new U.S. President Joe Biden has presented, which aims to boost economic activity and thus the consumption of black gold in the U.S.
The other interesting and encouraging news on the oil market concerns this time the positive news coming from OPEC and more specifically from Iraq. The latter has promised to reduce its oil production in January and February in order to compensate for the 2020 overrun. To better understand the interest of this announcement and the positive reaction of investors to it, it must be understood that Iraq is generally not among the most docile and accommodating producers in theOrganization of Petroleum Exporting Countries or OPEC and rather tends to regularly exceed the production quotas assigned to it by the cartel as well as by its allies through OPEC+.
Indonesia is also closely followed by oil investors:
Before closing this rather encouraging article about the relatively positive progress of oil, let us also note that investors and analysts are monitoring the situation in Indonesia. Indeed, the authorities of this country seized on Monday two Iranian and Panamanian tankers that are suspected of having illegally transferred crude oil into the waters of the Southeast Asian country.
Thus, the United States and its main allies are currently seeking to block sales of Iranian oil with the aim of cutting off sources of revenue in Tehran and increasing economic pressure on the regime. However, these events may also influence the oil market.