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Oil prices fell on Thanksgiving Thursday from their seven-month highs as Baker Hughes reported another increase in the number of rigs available
Rising prices in recent days have pushed oil prices to seven-month highs, largely thanks to positive news from the Covid-19 vaccine that promises to drive up demand for oil. Traders remain hopeful that the high efficiency of several vaccine makers will quickly increase demand for oil, which has fallen since March as a direct result of lower activity due to lockdowns around the world.
Along with the rise in WTI and Brent prices, oil stocks received a similar boost. US majors Exxon and Chevron both received a bump as the price of WTI rose. Exxon shares went from less than $ 37 to almost $ 42 in just a few days. But the price hike here started to show signs of fatigue on Thursday.
Chevron (CVX) stock prices also benefited from a surge, going from just under $ 86 to almost $ 95 by Wednesday. Thursday brought a similar fate to the U.S. major, as prices fell back to nearly $ 92.
At 8:14 a.m. EDT on Thursday, the price of WTI dropped to $ 45.08. down 1.38% on the day. Brent fell 1.44% to $ 47.91 on the day. Both benchmarks remain up this week.
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Despite API signs that crude oil stocks increased by 3.8 million barrels as analysts predicted a much smaller build, the vaccine effect pushed oil prices even higher. The EIA reported a day later that crude stocks had declined by 800,000 barrels, not increased.
But Baker Hughes on Wednesday, reporting earlier due to the holidays, showed no signs that drilling activity in the United States was declining. Primary Vision’s weekly data went a step further, showing that finishing crews – the number of fractional fractures as it is called in the industry – had also increased.
Next week’s prices are expected to react to the news from OPEC, as OPEC and OPEC + meet on November 30 and December 1 to discuss the way forward on production quotas for each. member.
By Julianne Geiger for OilUSD
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