Crude Oil Prices Trigger Up amid an Era of Asset Bubble

Oil traders are going long aggressively now after recent reports revealed U.S. President Donald Trump signed a $2.3 trillion COVID-19 aid and spending package, pushing oil prices far above their most recent support levels.

At the time of drafting this report, Brent crude futures gained about, 1.07%, to trade at $51.85 a barrel having lost as much as 1.5% to $50.53 a barrel at the Asian trading session early this morning.

Also the U.S based oil contract, the U.S. West Texas Intermediate (WTI) rallied high by 1.1%, to trade at $48.76 a barrel.

Oil bulls are pushing the black liquid hydrocarbon amid thin trading volumes prevailing, as some oil traders remain on the sidelines due to the long holiday week. Still, Oil bulls took charge of the recent price action as it revealed oil bears were kept under check on the bias that U.S. President Trump latest moves were received in good faith among many traders on the account it would help the world’s biggest consumer of oil in boosting its domestic spending and averting a paralysis in the U.S government statutory functions.

Also when you consider the negative correlation between the price of crude oil and the greenback, meaning oil bulls are safe for now on the account that the US dollar’s value dropped momentarily at London’s trading session this morning, thereby helping oil prices with some positivity.

However, oil traders understand the impact COVID-19 mutant strain has on the most vital commodity market taking into consideration oil prices posted their first weekly loss since October as the mutant strains of COVID-19 caused havoc in Western Europe and South Africa.

These has also disrupted air travels amid the ongoing festivity prevailing around the world and made the highest importer of crude oil China, suspend passenger flights to the United Kingdom.