Oil reaches its highest level of the month!

US oil inventories fell by more than 9 million barrels last week, dropping to their lowest level since October.

On Wednesday, prices rose above $75 per barrel after reaching their highest intraday level since December 26, while Brent crude climbed above $80. 

In China, the governmentannounced that it would reduce the reserve requirement ratio for banks within two weeks and signaled that further support measures could be on the way, aiding the energy consumption outlook for the world's largest crude oil importer.

Geopolitical tensions in the Red Sea were balanced by concerns that crude supply growth from non-OPEC producers will remain strong. 

Saxo Capital Markets Market Strategist Charu Chanana, "Given the abnormally cold weather that has recently disrupted production, the drop in EIA inventories could very well be an anomaly. However, non-OPEC supply continues to offset concerns in the Middle East, which suggests that oil may remain range-bound until there is more clarity on the global growth outlook,” he said.

News Source: 12punto