Global oil prices were rising by more than 3% in early trades on Tuesday, with Brent crude oil again costing more than $40 per barrel, following active growth in world stock markets.
For the North Sea Brent crude oil mixture, the price of the January future rose by 3.21 percent to $40.22 per barrel. December futures increased by 3.4 percent to $38.06 per barrel for WTI crude oil.
On Tuesday, in the world stock markets, oil traders were motivated by optimism and switched to aggressive purchases. European exchanges therefore display an annual growth of 2 percent on average, and there is also a promising potential dynamic on American stock indices. In anticipation of the first results of the US presidential election, with Republican candidate and White House incumbent Donald Trump and Democratic representative Joe Biden as the competitors, the rally in risk assets has intensified.
Oil prices, which are a positive factor for commodities, including oil, are also helped by the negative dynamics of the dollar against other primary world currencies. The index of the dollar is down 0.52 percent.
The prices were also helped by reports from OPEC countries about oil production. According to the Bloomberg news agency, citing sources familiar with the subject, on Monday, Russian Energy Minister Alexander Novak addressed with the heads of the country’s oil companies the postponement of the easing of the OPEC oil production reduction deal until the end of the first quarter of 2021. In May, new OPEC agreements began with a reduction in the supply of oil by 9.7 million barrels a day for a period of three months. The Alliance has managed to reduce production since August, but in smaller amounts, i.e. the reduction in production by 7.7 million barrels per day for the duration up to the end of the year and by 5.8 million by the end of April 2022.
“The US election will be the point of focus of all eyes today and tomorrow. It would certainly be a relief for the market if it did not have to think about an extra 1.9 million barrels per day, which would reach the market in early January,” SEB commodity analyst BjarneSchieldrop told the agency about the ability of OPEC to delay the production increase.