Crude oil futures rose to a two-month high Tuesday (Jan. 11) after Fed Chairman Powell testified. In addition, supply-side problems and falling concerns about Omicron are helping oil prices.
- WTI crude futures rose $2.99, or 3.8%, to close at $81.22 a barrel.
- BRENT crude futures were up $2.85 3.5 percent at $83.72 a barrel.
Crude oil futures rose due to tighter oil markets. After it was reported that OPEC+ produced below the set oil quota.
OPEC+ had previously agreed to increase oil production by 400,000 barrels per day in January. However, some members such as Nigeria and Libya are unable to meet the oil production quota due to the problem of domestic production
Oil markets also benefited as Federal Reserve Chairman Jerome Powell expressed confidence that the U.S. economy could overcome the coronavirus pandemic. The Omicron variant is expected to have only a temporary impact on the economy.
Investors are now paying attention to the weekly oil inventory report that the EIA is releasing today.
The Spot Market is Open
Wednesday, January 12, 2022