The prices of oil rose again on Thursday. It extends the rally for more than a week in the market. That was happened after the release of the industry data which shows the decline of th United States raw oil stock.

That situation adds the optimism about the prediction of demand which may be increasing as the global fuel. Brent raw oil increased for about 11 cent or 0.2 %. That became $ 61.20 after increasing for 1 percent on Tuesday in the market.

It was the moment when that commodity touched the highest level for 13 months. The United States raw oil increased for 2 cent and it became $ 58.28. Furthermore, there is also more information about the stocks and demands about this commodity.

The Stock Declines

The raw oil stocks decline for 3.5 million barrel in a week until 5 of Pebruary. It means that the commodity is now becoming 474.1 million barrel based on a data from the American Petroleum Institute. It was shown on Tuesday.

That will be compared to the analysts expectation like what are stated on the Reuters vote for the 985000 barrel increase. The legal data from the Energy Information Administration will be released soon. It could become a reference for people.

The statement which is similar to the thing reported by API is possible to give a continuous support to the market. That was said by an analyst of ING Economics. Based on API, the stock of oil in Cushing, Oklahoma, is decreased for 1.4 million barrel.

However, the stocks of fuel increase for 4.8 million barrel. It is especially if you compare it to the analyst expectation in a vote made by Reuters for the making of 1.8 million barrel. The legal data will be released on Thursday.

The Oil’s Prices Have Strengthened from November

The prices of this commodity have strengthened from November. It is because the government has started the vaccination effort to handle the COVID – 19 viruses. They did it in line with the huge stimulus value to increase the economy activity. 

The world’s largest exporter, Saudi Arabia, has unilaterally reduced the supply in February and March. It increases the cut which has been agreed by the members of OPEC and its allies. It is an organization which maintains the world’s oil commodity.

Many analysts are now predicting that there will be a stock deficit in 2021. It is because there will be more population which are vaccinated. It means that they can start to go to work or having a journey to somewhere.

That situation has a strong correlation with the oil industry. It has the strong potential to increase the demand of fuel and something like that. That is why; a lot of investors and market participants have high expectation on that.

The Causes of Price Increase

The combination of a higher distillation activities and lower import has been creating the fourth consecutive withdrawal of oil inventories. The thick decline was also happened at that time. However, an analyst from ClipperData warns something about it.

He said that the increasing number of fuel inventories offsetting the bullish sweepstakes. Brent now has been increasing for nine sessions in a row. It becomes the longest increase since the December of 2018 until January 2009.

That is the eight daily increases for that raw commodity. Some analysts said that the price has been moving too far in the front of basic fundamental. However, the price level nowadays is healthier than the real markert.

Furthermore, it is fully depended on the stocks decrease. Why? It is because the stock is needed to be recovered soon. The commodity has strengthened since November because the vaccination programs have been started by many governments.