US fuel demand pushes up oil prices despite virus threat

/ Oil & Gas / Thursday, 16 December 2021 12:30

Oil prices rose as demands from US petroleum consumer hit a record high even as the Omicron variant posed a threat to global consumption of oil.

Additionally, US Federal Reserve’s move to control inflation also influenced the oil prices.

Brent crude oil futures rose by 65 cents, or 0.9%, to $74.53 a barrel by 0436 GMT, while US West Texas Intermediate (WTI) crude futures increased by 74 cents, or 1%, to $71.61.

Data from the US Energy Information Administration showed US crude inventories dropped by 4.6 million barrels in the week to Dec. 10.

Product supplied by refineries, a proxy for demand, surged in the most recent week to 23.2 million barrels per day (bpd), due to gains in gasoline, diesel and other refined products.

Meanwhile, the Federal Reserve has said it would end its pandemic-era bond purchases in March and begin raising interest rates given the low unemployment levels and inflation rising inflation.

Latest Issue

Please publish modules in offcanvas position.