The price of oil increased by more than $1 per barrel. That was a rebound amidst the global optimism about the global economy growth although the pandemic is still there. 

Besides that, that was happened also because the United States’ crude oil stock declined for more than can be anticipated. The BRENT closed in a higher position of 2% or $1.44.

It means that it is in $73.03 per barrel. The West Texas Intermediate or WTI also increased by $1.40 or 2 percent to become $69.99 per barrel. Rally is shortly pushed that commodity in America. 

That is for the ones above the 50 days MA and it happens for the first time in a month. That becomes a bullish signal for the investors. Besides that, the crude oil contact is also stronger. 

The Oil Stocks are Declining

The situation happened is another sign that the market participants predict that the demands will be increasing because of the declining supply. That is occurred in the America. 

In that country, the oils stocsk are increasing by 7.2 million barrel last week. It was reported by the Energy Information Adminstration on Wednesday. There is a gold reason for this rally. 

The 1.5 million barrels are still offline in the shore. The amount of crude oil was decreasing yesterday and the storage was on the lowest level since the September 2019.

The amount of the Americans people who made the new claims for the jobless allowances declined last week. Meanwhile, the layoffs in August was also in its lowest level for more than 24 years. 

The Employment Market Starts to Recover

The statistics above are showing that the employment market start to recover. It is although the new variant of COVID-19 infection is still there. This optimism brings something. 

The OPEC+ country may rise the demand prediction in 2022. On Wednesday, that organization agreed too continue their policy about deleting the production decrease gradually. 

They will do it by adding 400,000 barrel per day. The Ida storm has been closing for about 80 percent of the oil production and gas as well in the gulf of Mexico lately. 

The oil refineries in Louisiana can take for weeks to start all over again. This condition may weaken the crude oil demands, but it can be offset with the slow production. 

The Gold Prices are Increasing

Elsewhere, the price of gold is ready to lift up because the sellers are carefully evaluating the market condition in facing the economy barometer which was declining. What is the effect? 

The gold makes a sharp reverse which was higher in the beginning of August and erased the sharp decline happened happened from the earlier month. It was when that commodity got the lowest level. 

This condition is based on the view that the US economy is still on it’s way to give what the Federal Reserve needs. It is especially to rise the interest rate. That aspect is a strong employment market. 

That Market is Becoming the Main Components

The US employment market is now becoming the main component for the federal Reserve. It is because the inflation has been beyond the target of 2%. That position has an effect. 

It makes the data is now in a sharp focus for the market participants. For gold itself, too many jobs is not a good thing. Vice versa, less jobs can be better for that commodity. 

However, some other factors also have their role. However, when they take a view in a wider way, the Fed’s path can be the most relevant one. The delta variant spread is a serious threat. 

The safe – haven attraction is becoming a reason for the power lately. Meanwhile, the covid effect may become the other attraction factor in the market nowadays.