Oil prices are recording the highest level in seven weeks

Last Updated on May 12, 2021

Oil Price Outlook – May 5 2021

Oil prices expanded their gains in the morning of trading today, Tuesday, in the European market, registering the second consecutive daily gain, and the highest level in seven weeks. These expanded gains come with market optimism for an improvement in global demand rates by the United States and Europe, following the reduction of the closure measures associated with the wave. Coronavirus came simultaneously from vaccinations, vaccines.

West Texas crude oil traded at $ 65.82 a barrel, the highest since mid-March, up by 2.1% from the opening price of $ 64.47, and Brent crude traded at $ 69.02 a barrel, the highest in seven weeks, adding about 1.9% of today’s opening price at $ 67.72.

Oil prices

Oil prices continue to rise

At the close of yesterday’s trading, WTI rose by 1.6%, and Brent crude rose by 1.5%, registering its first daily gain, driven by the decline of the US dollar against most of the major currencies.

Market sentiment has boosted investor optimism about global demand rates from the United States and Europe, which is currently witnessing an easing of lockdown measures against the third wave of the Coronavirus epidemic that recently spread at a rapid pace, but the numbers of infections have been reduced by high vaccination rates for vaccines.

Despite this, there is still concern about the high infection rates with the mutated virus in India, which is the third-largest consumer of oil in the world, in addition to increases in the rates of supplies by OPEC countries.

At the same time, Chinese data revealed an increase in crude imports into China during February and March, as car sales increased and domestic travel rates increased.

Since the beginning of this year, Brent crude has recorded a rise of about 30%, to recover from its lowest levels recorded last year, driven by the historic agreement concluded by the Kingdom of Saudi Arabia and Russia to reduce production levels.

However, OPEC Plus last week acknowledged its adherence to the plan to slightly raise production levels, starting this May.

 

Professional Trader and Analyst, economist in Financial and Forex marketsince 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
Mohammed Abdelkhalik

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