Crude Oil Prices Break Above Their Seven-Week HighCrude oil prices breached their seven-week high at the mid-week trading session in London over a record drop in America’s crude oil inventories with growing expectations that rebounding economic activities in key emerged markets will continually boost energy demand momentarily.
At the time this report was written, the British based oil contract, Brent crude futures was closing in on the $70 mark, and the West Texas Intermediate futures breached above the $65 a barrel price levels. Though recent price actions show crude bulls now face some resistance as oil traders keep an eye on ever-surging numbers of COVID-19 cases in India, the world’s third-largest importer of crude oil and Japan, a key buyer of the black viscous hydrocarbon.
However, recent data from the American Petroleum Institute postulate a massive drop of about 7.688 million barrels for the week ended in the month of April in what looks like the biggest plunge in crude oil inventories since late January 2021.
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Such drop exceeded the 2.191-million-barrel plunge energy experts had earlier anticipated thereby giving the bulls enough gas in roaring loud despite the greenback posting record gains on reports that the world’s largest economy might have its monetary supply tightened sooner than later.
American oil futures have already posted gains of more than 35% in 2021 alone– amid a broad advance across commodity markets — with oil traders betting that the rollout of vaccines will permit a return to pre- COVID-19 pandemic conditions despite reports pointing to rising COVID-19 caseloads in the world’s second most populated country further hint the world is not out of the wood yet.
That being said, market experts reveal oil bulls still call the shot has recent price patterns reveal West Texas Intermediate bulls successfully breached the $65.60 and look set to break the $68 a barrel resistance levels, with the positive momentumstill in play, this could affirm the bullish wave towards $68, noting that such continuation require holding above $64.35 for such to occur.