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Brent WTI Crude Oil

This was largely attributed to improved demand for energy, as evidence of major economies reopening gather momentum coupled with bullish outlook for oil further boosted more buying pressures.

Oil demand outlook looks sturdy as recoveries across the United States, Europe and Asia, reveal energy demand returning to pre-pandemic levels in the second half of 2022.

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Oil bulls are hitting the accelerator pedal hard after data from the American Petroleum Institute revealed U.S. crude inventories plunged by 8.54 million barrels in the past week, thereby printing its biggest drop since the start of this year, as oil traders wait for more confirmation from the Energy Information Administration data, scheduled to be released later today.

The black liquid hydrocarbon broke above rallied upwards to breach above $74 a barrel price level thereby reactivating its bullish scenario again, as it approaches the first positive target at $75 a barrel, with price patterns suggesting a continuation of the bullish bias to target $77 a barrel on the mid-term basis, noting that it is important to hold above $73 a barrel to continue the expected rise.

Market commentators further anticipate a likely scenario for oil prices hitting above $80/bbl. in the Q3 as vaccination rollouts continue to lift global economic activity and amid the full resumption of air travels.

Though market pundits argue that such surge might provide OPEC+ a scenario for price ceiling, with greater risks of supply shortages coming into play.

Oil prices’ present volatility is currently taking its course ahead of the Federal Reserve interest decision, scheduled to hold later today, with oil traders not expecting a change in interest rates, a narrative around preliminary discussions on scaling back bond purchases could negatively impact on the price of the black liquid hydrocarbon in the near term.

For a look at all of today’s economic events, check out our economic calendar.

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