Oil Prices In USA Rises Consecutively For Second Day Extending Refinery Demand

by | Feb 22, 2024 | Daily News, Environmental News

Home » Environmental News » Oil Prices In USA Rises Consecutively For Second Day Extending Refinery Demand

Oil prices in the USA experienced a second consecutive day of increase on Thursday, driven by the anticipation of a rise in demand in the States, the largest global consumer of oil. This expectation is based on the efforts of refineries to resume operations after disruptions and the weakening of the dollar.

At 5:10 am GMT, Brent crude futures saw a 17-cent, or 0.2%, increase, reaching $83.20 per barrel. Simultaneously, US West Texas Intermediate (WTI) crude futures for April rose by 19 cents, or 0.2%, reaching $78.10 per barrel. (Source: Reuters)

According to a Reuters poll, analysts anticipate that U.S. refinery run rates increased to 81.5% last week, compared to the previous week’s 80.6% of total capacity. The analysts at ANZ mentioned that any reduction in U.S. oil inventories is likely to provide additional support for oil prices. On Wednesday, oil prices increased by 1%, and contracts linked to imminent deliveries reached their highest premium in months.

Oil Prices in USA Rises Consecutively For Second Day Extending Refinery Demand

Meanwhile, the Middle East Concerns Persists

Continued tensions in the Middle East, such as the recent Red Sea attack, remain a persistent threat to global supplies, causing oil prices in the USA to retain a supply-risk premium. The United States’ rejection of a United Nations resolution for an immediate Gaza ceasefire, its third veto in recent months, reflects the lack of de-escalation in the Israel-Hamas conflict. Furthermore, attacks on Red Sea vessels by the Yemeni Houthis indicate ongoing disruptions in shipping, with potential repercussions for oil deliveries to Asia and Europe.

Supported by a declining U.S. dollar and increased tensions in the Middle East due to escalating Israeli strikes in Rafah and Houthi attacks in the Red Sea, oil prices are slightly rising. Brent crude and WTI have both increased by 0.3%, reaching $83.29 per barrel and $78.18 per barrel, respectively.

The resurgence of refineries in the United States is contributing to the rise in demand, following a string of outages that previously led to the lowest refinery utilization rates in two years.

Also Read: Residents Face Record-Breaking Air Pollution In Milan

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