The bullish rise of Brent and US crude oil for about 8% on December 26, 2018, posting its strongest daily gain. This is the largest gain since November 30, 2016. The prices rose in wake of the Organization of the Petroleum Exporting Countries (OPEC) agreement to reduce production. The analysts are unsure whether the prices will still shoot up following the New Year after a long holiday. The Dow Jones Industrial Average increased by more than 1000 points. This was the biggest ever one day gain during the Christmas time.
The global benchmark, UK Brent crude oil futures, increased from $49.93 to $54.47.The Brent crude rose $4, or 7.9 percent. In the previous session, it fell about 6.2 percent which is the lowest since July 2017. Brent also settles to trade more than $55 a barrel which is higher above 9 percent. Brent remained as low as 18% on this year. By hitting $87 a barrel in October, It deviated 37% from four-year highs.
The U.S. West Texas Intermediate (WTI) crude futures ended $3.69, or 8.7 percent on December 26, 2018 session. The cost per barrel was $46.22.The values shot up from 6.7 percent down on December 24, 2018. WTI traded more than 10 percent higher near $47 a barrel after the settlement. The US crude futures settled as low as $42.53 on December 24, 2018, after striking June 2017 low of $42.53. WTI remained as low as 24% on this year. By hitting $77 a barrel in October, It deviated 40% from four-year highs.
The US government shutdown during the long Christmas and New Year holidays, higher U.S. interest rates and the U.S. –China trade war are the main concerns of the investors. The agreement among OPEC to cut down oil production adds fuel to the crude prices.