The Price of Oil is at its Highest in A Year
Oil prices rose again on Tuesday and ended at their highest in a year, driven by a series of encouraging factors on the supply and demand side.
In London, a barrel of North Sea Brent for April delivery was up 0.88% or 53 cents from Monday’s close to $ 61.09.
WTI’s US barrel for the month of March appreciated 0.67% or 39 cents, ending at $ 58.36.
Brent remains on an impressive streak of eight consecutive rising sessions. WTI meanwhile completed their seventh straight advance.
The two benchmark contracts in Europe and the United States have appreciated by around 20% since the start of the year and have returned to higher prices since the end of January 2020, before the pandemic plunged them into the abyss .
“New day, new high: Today is no exception,” notes Eugen Weinberg, analyst at Commerzbank.
Crude oil “increases its earnings, stimulated by reductions in the supply of major producers, strict discipline (compliance with quotas) and the hope of new economic stimulus measures in the United States”, enumerated Avtar Sandu, of Phillip Futures.
The analyst refers to the policy of the Organization of the Petroleum Exporting Countries (OPEC) which has sharply reduced its production of black gold since last spring, and is still collectively constrained to a cut of some 7 million barrels daily.
The market is also closely monitoring negotiations in the United States, where Joe Biden’s government intends to pass a massive $ 1.9 trillion plan as soon as possible to allow the economy to recover quickly. The crude market will benefit from this.
“A weaker dollar also helped prices appreciate,” Sandu added.
“Everyone without exception: analysts, researchers, investment banks, hedge funds … paint a positive picture for the months to come,” said Tamas Varga, of PVM, recalling that “the last time the market oil was also optimistic, it was probably in 2008 ”.
The price of Brent then exceeded 140 dollars a barrel during the summer and then collapsed, swept away by the financial crisis.
The Price of Oil is at its Highest in A Year - /10