Crude oil futures grew in February

Noam Stiekema

The price of WTI crude oil futures rose sharply on Friday to record its first monthly increase of seven months amid speculation about shrinking US production. The New York traded raw material with delivery in April rose by 3.3% on Friday and closed the week at 49.76 USD per barrel. The sharp rise in the […]

oil platform

oil platformThe price of WTI crude oil futures rose sharply on Friday to record its first monthly increase of seven months amid speculation about shrinking US production. The New York traded raw material with delivery in April rose by 3.3% on Friday and closed the week at 49.76 USD per barrel. The sharp rise in the trend extended the significant price volatility over the past few weeks. The price rise or fall by more than 2% in direction 25 of the last 38 trading sessions.

On Thursday the WTI crude oil wiped by 5.53%, to close at 48.17 USD per barrel. Weekly the US crude oil price fell by 2.71%, registering the second consecutive weekly decline. However, contracts rose by 0.91% in February, cutting seven consecutive months of decline.

The research showed they the number of platforms for oil production in USA fell by another 33 last week to 986, which is the lowest level since June 2011. The number of crude oil extraction platforms decreased in 17 of the past 20 weeks after hitting a record high of 1609 in mid-October.

The market participants pay particular attention to the number of platforms in recent months, expecting ultimately to reduce the glut of global oil market. However, the total crude oil reserves in USA rose to 434.1 million barrels last week, which is the highest level of at least 80 years.

Meanwhile London Brent oil with delivery in April rose with 4.21% on Friday to close the week at 60.05 USD per barrel. The April contracts rose by 3.3% for the week in view of concerns about disruptions in production in Libya and Iraq. February trading price in London Brent oil rose by 15.31%, taking into account the first monthly growth since June 2014 and the highest monthly increase in nearly six years.

The Oil Minister of Saudi Arabia, Ali al-Naimi said earlier last week that oil markets have stabilized after a long period of volatility at the end of last year. The price of crude oil fell sharply in recent months, after OPEC resisted calls to reduce production. The US, spurred yield the fastest pace in more than three decades, creating a glut in global supplies.

The spread between Brent and WTI reached 10.29 USD per barrel at the end of trading on Friday compared to 9.41 USD the previous week.

Read this next

Industry News

CFTC comments on ION Cleared Derivatives issues after Russian-linked hack

“The ongoing issue is impacting some clearing members’ ability to provide the CFTC with timely and accurate data. As this incident unfolded, it became clear that the submission of data that is required by registrants will be delayed until the trading issues are resolved.”

Industry News

FCA took down 14 times more misleading ads in 2022 thanks to technology

The FCA has made significant improvements to the digital tools it uses to find problem firms and misleading adverts. These improvements have enabled it to work through a much larger number of cases compared with 2021.

Executive Moves

HKEX appoints ex-Goldman Sachs Matthew Cheong to lead platform’s focus on derivatives

“He has worked for a number of the world’s leading investment banks and his experience will be invaluable to HKEX as we continue to enhance our derivatives product offerings and build on our innovative and robust platform business, connecting capital with opportunities.”

Digital Assets

Zodia Custody and SBI Digital Asset Holdings launch JV for crypto asset custodian in Japan

“Zodia Custody is both proud and excited to be working with SBI DAH to help set up SBI Zodia Custody; the first tier 1 crypto asset custodian for institutions in Japan.”

Digital Assets

Paxos opens R&D center in Israel to focus on transaction signing and crypto custody security

“Paxos is looking to expand its team in Israel in 2023 and beyond, giving engineers the opportunity to work on cutting-edge financial products and shape the future of the global economy.”

Executive Moves

Stash appoints Liza Landsman as CEO to further grow investing app

Stash is an investing and banking app with over 2 million active subscribers. Its subscription plans start at just $3 a month, and offer a range of products including investing, banking, education, and advice.

Institutional FX

Invast Global ramps up its offering with 10 soft commodity CFDs

Sydney-based prime-of-prime provider Invast Global has expanded its offering with the addition of ten soft commodity CFDs, which increases their index and commodity CFD offering to 35 instruments.

Retail FX

FF Simple and Smart Trades says Goodbye to CySEC authorization

The Cyprus Securities and Exchange Commission (CySEC) confirmed that it has wholly withdrawn the Cyprus Investment Firm (CIF) licenses of FF Simple and Smart Trades Investment Services Ltd.

Crypto Insider

Shining the Light in Crypto’s Dark Places

Something changed in regulators’ minds after the November crash of the FTX crypto exchange.

<