US oil prices reached their highest level in five weeks on Friday as world crude futures markets recorded their longest record of wins, fueled by hopes of a short-term trade deal. term with China, the weak US dollar and OPEC supply cuts.
West Texas Intermediate crude oil futures, a benchmark for domestic oil markets, which are closely tied to US gas prices, have risen nearly 25% since a multi-year low of $ 42.53 on December 24, while OPEC has reduced production by 1.2 million barrels a day to offset the continued rise in US production, which hit a record 11.7 million barrels a day last week. Constant progress in trade negotiations with China, the world's largest energy consumer, and the weakening dollar have prolonged the oil market recovery in a tenth consecutive session, the longest since 2010.
"Oil markets have moved from outside markets to penthouses after having their best run of victories in nearly a decade," said Stephen Innes, Oanda's Asia-Pacific Transaction Manager. "Tensions on the S & P and oil markets have been firmly based on the thaw of US-China trade tensions, and (Federal Reserve Chairman Jerome Powell), pointing out that his patience has added to the positive rumor while energy markets continue to extend its recent close correlation with stock markets. "
The global benchmark, Brent crude contracts to be delivered in March, rose 22 cents from Thursday's close in New York and changed hands at 61.88 dollars a barrel , their highest level since late November. WTI contracts for February rose 28 cents to 52.87 dollars a barrel, the highest level since 4 December.
If the crude futures contracts end in positive territory today, it will be the longest winning streak since their launch in June 1988 and the best five-day gain in at least two years.
The US gasoline price tracking website, gasbuddy.com, says average prices hit $ 2.26 a gallon this week, compared to $ 2.23 in early January when President Donald Trump said that Low prices at the pump were considered a "tax break" for American consumers.
Do you think the price of gasoline is so low and it's falling? The low prices of gasoline are like another tax reduction!
– Donald J. Trump (@realDonaldTrump) January 1, 2019
That being said, gasoline prices, particularly low in December, due to the 30% decline in crude oil compared to the fourth quarter of 2018, should help control inflation when oil and gas numbers are down. CPI of the month will be released later today. The Department of Energy's CPI gasoline price index dropped 11% last month, a figure that, according to Ian Shepherdson of Pantheon Economics, will reduce by 0%. , 26 percentage point the rate of inflation posted today.
"Prices for other energy products, including home heating oil, are also expected to fall sharply in December, but their weighting in the CPI is insignificant compared to that of gasoline," said Shepherdson.