PT Solid Gold Berjangka | Oil Holds Two-Day Gain as Red Sea Risk Offset by US Stockpiles

01:48 07 February in Commodity, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP

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Solid Gold Berjangka | This Bloomberg report discusses the recent trends in the oil market, highlighting a steady increase in oil prices despite concerns about geopolitical tensions in the Middle East and an expansion in US crude stockpiles.

Key points from the report include:

  1. Oil Prices: West Texas Intermediate (WTI) traded above $73 a barrel, showing a slight increase after a 1.4% gain over the previous two sessions. Meanwhile, the global benchmark Brent closed near $79 on Tuesday.
  2. Geopolitical Tensions: The report mentions the geopolitical tensions in the Middle East, particularly citing the Houthis’ attacks on two ships in the southern Red Sea. Additionally, the US has indicated intentions for further strikes against Iranian forces and their proxies.
  3. US Crude Stockpiles: According to the American Petroleum Institute (API), US nationwide crude inventories grew by 674,000 barrels last week. Stockpiles of gasoline and holdings at the Cushing oil storage hub also expanded.
  4. Upcoming Data Release: The Energy Information Administration (EIA) is expected to release official figures later on Wednesday, which will provide further insights into the current state of US crude inventories.
  5. Market Dynamics: Despite the geopolitical tensions and rising transport costs, oil prices have remained only slightly higher than at the beginning of the year. This is attributed to a shaky macroeconomic outlook and strong supply in the market. However, there has been a significant increase in open interest across oil derivatives contracts, indicating growing interest in oil futures.
  6. Current Prices: WTI for March delivery rose 0.2% to $73.42 a barrel, while Brent for April settlement closed 0.8% higher at $78.59 a barrel on Tuesday.

Overall, the report suggests a complex interplay of factors influencing oil prices, including geopolitical risks, supply dynamics, and market sentiment.