Both Brent and US crude oil futures’ prices had extended their three-day long rally on Friday, the 27th of December 2019, harboring on to their three-month-peak following reveal of a softer US inventory build last week.
Aside from that, a stock market rally, which had also included energy stocks and revived optimisms of global growth which had contracted sharply over the recent months, had also helped crude oil futures’ rise for the fourth straight session in a row.
On top of that, strong economic figures from China alongside hopes of a US-China interim trade deal by early January had offset demand worries and fueled up investors’ optimisms further. As beforementioned, Friday’s (December 27th) data from US Energy Information Administration (EIA) had shown a sharp drop of US crude inventories by 5.5 million barrels to 441.4 million which missed an analysts’ estimate of a decline of 1.7 million barrels by a wider margin and flared up Friday’s (December 27th) crude oil rally.
Meanwhile, referring to a year-end rally of US stock indices including energy shares, a chief market analyst at RJ Futures in Chicago, Josh Graves said on Friday’s (December 27th) market wind down, “Stocks are paying to bet on higher prices.
It is a move driven by Santa Claus. People are buying more which indirectly drives oil prices up. ” Citing statistics, on Friday’s (December 27th) market round off, UK crude futures’ price ended the day up by 0.32 per cent to $68.16 per barrel, while US West Texas Intermediate crude futures’ rose 0.06 per cent to settle down at $61.72 a barrel,