Crude Oil Bulls hold Ace High, on Prevailing Bullish Dynamics in Play

These bulls are taking grip of the most popular derivative market on recent reports that reveal the unusual winter storm currently in play at America’s leading energy hub; Texas continues to disrupt oil production at record levels. In fact, some energy pundits suggest more than one-fifth of U.S. refining output and a million barrels of oil output have shut down.

At the time of drafting this report, the British-based oil contract, Brent oil futures surged by over 1% to trade at above the $65 per barrel price level the highest price sighted since January 2020.

In addition, the U.S based oil contract, West Texas Intermediate futures rallied by 0.92% to trade at $61.70 per barrel, its highest level since January 8, 2020. These major oil benchmarks remained firmly above the $60 a barrel price levels as the recent price actions suggest Oil bulls dominate, thus showing gains of more than 6% in the past four trading sessions.

Oil traders are particularly not overlying bothered about the Saudi rollback amid the roaring recovery in energy demand, as recent metrics from COVID-19 vaccines roll-out reveal positive signs in curbing the worst pandemic known in the history of humanity.

Oil prices are expected to remain at least in the $60 a barrel price level for the mid-term at least in the case for Brent crude prices taking to consideration that the number of COVID-19 caseloads and the death toll has plummeted to record lows.

Also playing out big time is the Texas winter storm that has triggered a virtuous circle of events at the energy derivative market and has likely taken the black liquid hydrocarbon to a level where leading energy experts had earlier anticipated will eventually head to but just a little bit quicker than many expected.