Brexit and A Dip in Stockpiles Helps Boost Oil – 23 December, 2020

A drop in U.S. stockpiles caused oil to extend gains as a focus shifted towards the hope for demand. U.S. West Texas Intermediate crude futures were up 0.4% or 18 cents to $48.30 per barrel. Brent crude futures were up 0.4% or 20 cents to $51.40 per barrel. Both contracts rose more than 2% before the Christmas holiday. U.S. crude stockpiles were down to 499.5 million barrels, down 562,000 in the week of Dec 18 according to the Energy Information Administration. Prices were also supported by the news that the European Union and Britain were inching closer to a Brexit trade deal.