Crude Oil Prices on the High, Energy Demand Picks UpCrude oil prices kept the bullish trend on as, the price of Brent crude stayed above the $40 support levels.
Crude oil prices kept the bullish trend on as, the price of Brent crude stayed above the $40 support levels, extending some grounds from yesterday’s trading session day on optimism about recovering energy demand worldwide, despite a surge in COVID-19 cases in the western world.
“Part of the rebound here is the idea that all the stimulus measures that central banks and the world’s governments are pumping into the economy is going to have a positive impact on economic activity and that it will be supportive to demand,” said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut.
Brent crude gained about 1.47%, or to trade at $41.52 at 4.03GMT, however, Brent crude was heading towards a minimal fall for the week also the U.S. West Texas futures appreciated by 1.1%, to trade at $39.23
“Overall, commodities markets were taking a positive view on the global recovery on Friday despite worries about coronavirus flare-ups, said Michael McCarthy, chief market strategist at CMC Markets.
“It does appear the market is ignoring supply and demand fundamentals and moving on sentiments,” he said.
In addition, experts said data obtained from satellites showed growing traffic activities in the United States China, and Europe, buttressing the point the energy demand is picking up.
However, there are fears in the resurgence of the COVID-19 virus in some parts of America, which could pause the demand recovery for energy
“The risk of a fresh outbreak could hit the recovery in demand,” ANZ Research said in a note.
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