Oil prices rose sharply this year and continued to occur this week. The fall in crude oil reserves in the United States indicates a growing demand for such energy resources in the market at this time.
US Oil traded higher today at around $ 58.10 per barrel compared to $ 51.00 per barrel in early February. Meanwhile, UK Oil traded high at around $ 60.80 per barrel today. The high jump started this year after prices plummeted early last year.
According to a report from the American Petroleum Institute, crude oil storage inventory in the American market last week dropped by 3.5 million barrels, a steady decline over the past few weeks.
Goldman Sachs estimates that demand for crude oil will continue to rise by 2022 and expects prices to continue to surpass the $ 60.00 per barrel level. The U.S. government reports it will increase the volume of crude oil supply into the market to meet continued positive demand.
The world's largest oil producer, Saudi Arabia reduced its crude oil production to the market this month, and in March OPEC (Organization od the Petroleum Exporting Countries) is expected to continue limiting its crude oil production to rebalancing supply and demand in the market at the same time stabilizes prices.
Widespread vaccination program factors are currently underway adding to market optimism for a better economic recovery this year, thus convincing investors to be more aggressive in investing in financial markets.