Stock markets have rallied again on Wednesday, with the Dow Jones Industrial Average up by almost 10 points, and the S&P 500 up almost 6.5%.
Oil stocks were buoyed by the release of the first comprehensive review of the country’s oil supply by the US National Petroleum Council (NPC), which found the country could continue producing oil for a few more years.NPC chief economist Michael Pachter told Bloomberg the NPC’s assessment, which included new data from the Bureau of Economic Analysis (BEA), was “positive, albeit a cautious one”.
“This is a significant result, as we were very confident the US could continue to have oil reserves for many years to come,” Pachters said.
“But we have to be very careful, because we are in uncharted waters.”NPC Director of Oil Resources Mark Waddington said the review, which examined US oil reserves, proved the US has enough oil to last until the end of this century, and it was likely to remain that way.
“The US is the world’s largest oil producer, and its production has grown significantly over the last few decades,” he said.
“The fact that it has remained that way is a testament to the resilience of the oil industry.”
In the second half of the year, oil prices fell again as OPEC members failed to agree on a new production cut.
However, on Wednesday the Dow’s DJIA index gained 3.3 points to 23,054.17.
The S&P 500 gained 2.4 points to 2,929.40.