Oil broke through the level of $84 per barrel for the first time in two months

On Wednesday, oil prices showed a sharp rise above the significant level of $84 per barrel. The current Brent quote is $84.40, WTI crude oil has risen to $82.20 per barrel. 

The market was supported by a general increase in appetite for risky assets against the background of statements by Federal Reserve Chairman Jerome Powell that the US Central Bank will be able to slow down inflation without undermining economic growth.

Additional support for the oil market was provided by yesterday's data from the American Petroleum Institute (API), according to which oil reserves in the United States decreased for the seventh week in a row (the reduction was 1.077 million barrels for the week after falling by 6.432 million barrels a week earlier).

Today, we should pay attention to similar statistics from the United States Department of Energy: analysts predict a decrease in oil reserves in the country by 1.6 million barrels. They also expect an increase in gasoline stocks by 3 million barrels, and distillates – by 2 million barrels.

Another positive factor for oil quotes was the report of the Energy Information Administration of the US Department of Energy (EIA), in which the agency predicts an increase in oil demand in the US in 2022 by 840 thousand b/d, which is higher than the previous forecast of growth by 700 thousand b/d. The Ministry of Energy also raised the forecast of Brent prices for 2022 from $70 per barrel to $74.95 per barrel.