Crude oil prices rose for the second consecutive day during trading Wednesday to record their highest levels since mid-February 2020 after US inventories of crude oil decreased by more than expected, prompting investors to ignore the numbers of deaths and injuries resulting from the Corona pandemic.
US crude oil futures are trading today at the level of $53.40 a barrel, after hitting the highest level since mid-February at $53.90 a barrel, while it had opened trading today at the level of $ 52.60 a barrel.
As for Brent crude, it recorded its highest level today at the level of $57.39 a barrel, and it had opened trading today at the level of $56.70 a barrel.
It is noticed that crude oil prices, whether US Crude or Brent, have returned to trading at pre-pandemic levels, in a clear disregard by investors of the recent developments regarding the Corona pandemic, especially in light of the high numbers of injuries and deaths around the world.
One of the reasons that helped prices recover was comments by Chinese President Xi Jinping, which provided an optimistic assessment of the world's second largest economy and biggest importer of oil.
In addition to this, the American Petroleum Institute report released yesterday showed that crude oil inventories decreased more than expected by 5.8 million barrels during the past week, bringing the total to 484.5 million barrels, and expectations were for a decrease of 2.3 million barrels only.
It also appears that the production cuts by Saudi Arabia and other major OPEC producers have helped support price levels, while still being cautious that the escalation in crude oil prices would push more American drilling companies to enter the market again.
Later in the day, the EIA government report may signal a fall by 3.2 million barrels in U.S. crude inventories last week, following a drop by 8 million barrels a week before.