Crude oil futures closed more than $1 higher Thursday (Dec. 16) on strong demand in the U.S. and lower oil inventories.
- WTI crude futures were up $1.51 to close at $72.38 a barrel.
- Brent crude futures were up $1.14 to close at $75.02 a barrel.
According to the EIA, oil demand in the United States has increased this year after slumping from 2020. Refinery production rose to 23.2 million barrels per day last week, indicating demand for oil.
U.S. crude oil inventories fell by 4.6 million barrels last week, compared with a forecast of 1.7 million barrels.
In addition, oil markets appear to be benefiting from the outcome of yesterday’s Federal Reserve (Fed) monetary policy meeting, when the Fed announced it would end its QE program in March 2022. Thus, the Fed has confidence in the recovery of the U.S. economy while COVID-19 continues to spread in the form of Omicron.
The Spot Market is Open
Friday, December 17, 2021