CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

US oil demand hits record highs, adding to inflation push

By Daniel Tyson

18:50, 16 December 2021

Oil valves and pipelines
Oil prices were up on Thursday as demand hit record highs - Photo: Shutterfly

Oil prices continued to climb Thursday as US demand hit near record highs.

At 2 p.m. EDT (UTC-5) West Texas Intermediate on the New York Mercantile Exchange was selling at $72.50 a barrel, up 1.76%.

The four-week average of petroleum demand stands at a record high of 23.2 million barrels daily, about 20% higher than 2020 levels, signifying a surge in usage of gasoline, diesel and other refined fuels, analysts said.

Analysts wrote that the surge in demand was due to more people travelling this holiday season and an increase in trucks on the highways to deliver products.

Crude inventories drop 

The US Energy Information Administration released its weekly numbers Wednesday showing crude exports returning to normal and a larger-than-expected draw on domestic crude stock. 

U.S. crude inventories dropped by 4.6 million barrels in the week to 10 Dec, according to EIA data, more than double the 2.1-million-barrel drop that analysts predicted.

Refinery production reached 23.2 million barrels a day, mainly due to an increase in output of gasoline, diesel and other refined fuels.

Oil - Brent

75.98 Price
+2.030% 1D Chg, %
Long position overnight fee -0.0174%
Short position overnight fee -0.0045%
Overnight fee time 22:00 (UTC)
Spread 0.045

Oil - Crude

71.41 Price
+2.320% 1D Chg, %
Long position overnight fee -0.0204%
Short position overnight fee -0.0015%
Overnight fee time 22:00 (UTC)
Spread 0.030


2,004.85 Price
-1.180% 1D Chg, %
Long position overnight fee -0.0198%
Short position overnight fee 0.0116%
Overnight fee time 22:00 (UTC)
Spread 0.50


23.02 Price
-3.350% 1D Chg, %
Long position overnight fee -0.0204%
Short position overnight fee 0.0122%
Overnight fee time 22:00 (UTC)
Spread 0.020

Meanwhile, analysts said that the Federal Reserve’s Federal Open Market Committee's decision Wednesday to end its Covid-era bond purchases in March and begin raising interest rates in 2022 probably will not affect continued demand for oil products. 

Covid stalling price gains

On the other hand, worries about the newest variant of the coronavirus have put downward pressure on oil prices, according to analysts.

Omicron is reportedly spreading rapidly in the UK and South Africa. Businesses across the world are again requesting employees to work remotely, which could bring down demand for oil.

'Trauma remains'

Commerzbank’s Energy Analyst Barbara Lambrecht said in an email that “trauma remains” for the oil industry.

Her forecast is that oil demand will increase sharply, no further oil reserves are likely to be released, and the supply surplus should be significantly lower. .

Read more: Energy commodities rally after Fed announcement 

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading