Oil prices are rising: Brent crude at $80.38 per barrel

In international markets, a barrel of Brent crude is currently trading at $80.38.

Yesterday, the price of a barrel of Brent crude rose to as high as $80.73 but finished the day at $80.04. As of 09:02 today, the price of a barrel of Brent crude had reached $80.38, up 0.42 percent from the close. At the same time, a barrel of West Texas Intermediate (WTI) crude was finding buyers at $75.47.

Oil prices are rising due to data indicating increased oil demand in the US and signs of economic recovery in China.

According to official inventory data released yesterday by the US Energy Information Administration (EIA), commercial crude oil stocks in the country fell by approximately 9 million 200 thousand barrels last week.

The expectation was for a decrease of 3 million barrels. The larger-than-expected drop in stocks supported oil prices by signaling high demand in the US.

The People's Bank of China lowered the reserve requirement ratio for banks and credit institutions by 50 basis points yesterday. Central Bank Governor Pan Gongsheng stated that this decision would take effect on February 5 and that the goal was to provide sufficient liquidity to the market. Analysts anticipate that this step could reduce deflationary pressure in the country and increase risk appetite.

Ongoing tensions in the oil-rich Middle East are increasing concerns about the impact on global oil supply. Yesterday, the Iran-backed Houthis in Yemen reported that they had struck a US warship in the Gulf of Aden and the Bab al-Mandab Strait and forced two commercial vessels to turn back, raising tensions in the region. Houthi Military Spokesperson Yahya Saree stated in his announcement that they would continue their attacks.

News Source: AA