Oil Prices at Their Highest Price Levels Since October 2018
Recent economic data coming from the world’s largest economy, postulate energy demand is expected to relatively gain momentum, particularly this summer with the ease of restrictions in many key economic hubs and social mobility gathering pace.
At the time of drafting this report, the U.S. West Texas Intermediate (WTI) crude futures spiked by 0.5%, to trade at $68 a barrel further extending a 2% gain recorded on Tuesday. Crude oil prices are trading at their highest price levels since October 2018.
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The British based oil contract, Brent crude futures also posted similar gains as it traded near $71 a barrel, after surging by 1.3% overnight, when it hit its highest mark since early March.
Oil bears are presently grumbling on the sidelines amid growing energy demand outpacing supply gains even with the agreed month-by-month by OPEC+ and all production increases taken into account.
Present price actions reveal Crude oil bulls hold the ace after a 3-month consolidation as oil bulls gather enough gas in breaking out to a new high on account of Prince Abdulaziz bin Salman’s Oil Sherriff most recent statement revealed a solid demand recovery in the world’s most powerful economies remain on course coupled with the remarkable pace of vaccine rollouts, gave oil bulls enough firepower to break their immediate resistance levels.
OPEC liable for over one-third of global oil production is seeking to balance an expected surge in energy demand globally with the potential for an increase in Iranian output.
In addition, OPEC Secretary-General, Mohammad Barkindo also boasted traders’ morale as he disclosed the oil cartel could absorb Iranian exports.