The price of oil rises by more than 2%. That is a sharp jump which is happened on this commodity. This situation is supported by the decline of stocks, especially the crude ones in the United States. Another reason also follows it.

That is the increase in fuel demand for the cold season. It becomes the impact of the worst blizzard in several years that hit northeastern America. Based on the data, the level of this commodity experiences the move in the market.

The Brent Crude commodity is an example. It increases by about $ 1, 22 cents or 2.2% per barrel. In the other case, the United States crude oil is on its static level. It is 2.59% higher on $53.55/ barrel. 

Important Data from the US Government

Both of the benchmarks also rise by almost 8% in January. Data from the US Government last week shows the decline of 2.3 million barrels in Cushing, Oklahoma. For your information, that is the center of crude oil future delivery. 

The commodity is supported by so many small factors this week. Those are the decline expectation in Cushing, a sudden increase of cold season fuel demand amidst the colder weather, and a further discussion in Capitol Hill.

That discussion is about the stimulus. It is not a secret anymore that the package stimulus is still becoming the warm issue. It is said that the amount of funds that will be given is not like what it is planned. What is that mean?

It means that the stimulus may be given, but the amount could be less than $1.9 million. However, everything is still not sure until now. The related parties are still in a discussion to decide a further deal about that topic.

The Impact of a Winter Snowstorm

Southeastern America was hit by the worse snowstorm. The storm hit the vast swat of Pennsylvania until New England. The affected area is so large which it may bring a great impact on the commodities such as oil.

Furthermore, the storm was also hit some big city centers in those areas. Goldman Sachs predicted that the price can increase become $ 65 in July. The oil market deficit may reach the level of 900000 barrels per day (BPH).

That condition may happen in the first period of 2021. For your information, the higher level from the past prediction is in 500000 barrels per day. The OPEC production is also up for the seventh month in January this year.

A survey made by Reuters showed that the organization and its members agree to limit the further stock. What steps is still done even though the production growth is smaller than it is expected, especially by the marker participants?

Pound was Depressed

The pound was weakened to Dollar. That happened in only several days which are remaining until the Bank of England gave their decision about the monetary sector and a report which was anticipated about the eligibility of interest rate.

Many people thought that the Bank of England will hold the interest rate and obligation purchase on Thursday. However, that institution will give some guides about the negative interest rate and its possibility to be a device or not.

BoE will also release the report due to the negative interest rate impact on the banking industry. Andrew Bailey as the Governor of BoE before was underestimating that situation. He quoted the worry about how it affects the banking industry worldwide.

The interest rate warriors have been giving the sentiments lately. That was made amidst the Brexit decision which is finally got its deal. It reduces the uncertainty of sales between British and UE, meanwhile people wait for the vaccine's release.