Current Oil Price Posts its Largest One-Month Increase
The current oil price is on its way to posting its largest increase in one month as the rise in supplies in the United States was lower than expected and speculations develop that the European Central Bank will reduce interest rates.
On the NYMEX, the U.S. benchmark crude for delivery in June moved $1.94 higher to $91.12 per barrel.
The crude price per barrel increased as expectations grew among investors of ECB’s interest rate reduction in the coming week after another weak business poll in Germany, the largest economy of Europe. The gains increased after the Energy Department of the U.S. said that the supplies of crude oil grew 0.2 percent, or 900,000 barrels, to 388.6 million barrels in the past week. Analysts anticipated a rise of 1.4 million barrels.
A huge decline in the supplies of gasoline was also advantageous to the price of oil, signifying a slight increase in demand, even if it was still 1.7 percent lower over the four weeks that ended on the 19th of April.
Meanwhile, the current gasoline price average at the national level stays steady at $3.52 per gallon, a rate that is cheaper by 33 cents compared to this time last year.
On London’s ICE Futures Exchange, Brent moved 1.28 higher to $101.59 per barrel.
In other NYMEX trading, wholesale gasoline and heating oil both increased by 2 cents and 3 cents to their respective prices of $2.74 a gallon and $2.83 per gallon. Natural gas shed 7 cents to a price of $4.17 per thousand cubic feet.