Amid uncertainty driven by geopolitical events, oil prices surged to record highs. However, a correction in oil prices is observed with a gradual improvement in the situation in the Middle East and an increase in demand. The question facing investors is whether there are prerequisites for further price growth or if everything depends on the dynamics of the political landscape. In this article, we will explore the impact of recent events on the global oil market and the prospects for developing this crucial commodity sector.
Oil is back to pre-pandemic levels!
2021-02-09 • Updated
The global recovery increased the demand for crude oil and dragged the price to the pre-crisis levels. It was mainly caused by the vaccine rollout, which improved the overall market sentiment and gave hope to investors that the Covid-19 pandemic will come over soon. Besides, OPEC+ continues cutting oil production, helping to avoid the oversupply. Besides, expectations for extra Biden’s stimulus package added to hopes of a quicker global rebound and boosted oil prices.
Follow crude oil inventories on Wednesday at 17:30 MT time. The market forecast is the drop of 1 million barrels. If actual inventories are less than this forecast, crude oil will jump! Otherwise, oil will fall.
Oil prices have taken a break today after a long rally up. The RSI indicator went above the 70.00 mark, signaling the overbought area. Elsewhere, it has approached the upper trendline of the Bollinger Bands. Therefore, the short pullback to the downside is likely to happen soon, but it shouldn’t go lower the support of $52.00. On the flip side, the move above $60.00 will drive oil to the high of December 2019 at $65.00.
The current oil CFDs are WTI-21H and Brent-21J.
The energy industry has undergone several major changes in the XXI that are becoming increasingly apparent…
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