Brent Price Rising Amid News Of US Oil Stock Plunging

News about lower decreasing oil stocks in the US are pushing the prices up. Brent crude is trading at its 5-month high at the London Stock Exchange.

American Petroleum Institute reports a decrease in US oil inventory by 8.59 million barrels. Global markets have immediately responded, sending oil futures up. At its peak, the price of Brent crude hovered above $46, correcting to $45 shortly after.

The crude oil market is also supported by the constantly weakening dollar and the news of the US government’s intentions to pass a new $2.4 stimulus plan.
However, this growth will likely only be temporary due to serious concerns regarding the possibility of the second wave of Covid-19 lockdowns. Besides, OPEC has already announced its plan to test the market by bringing back some of the supply after OPEC+ has limited petroleum output.