Oil Bulls Having a Perfect Moment amid Era of Ultra-Low Interest Rate PolicyOil prices are on their fourth day winning streaking thereby pushing to the highest price levels in more than a year triggered by monetary easing policies and lower crude oil output in the world’s biggest economy.
At the time of writing this report, the U.S based oil contract for April was trading at around $63.64 a barrel, up, 0.66%.
Also the British based oil contract, Brent crude futures was roaring high by 0.78% trading at $67.56 a barrel.
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Both major oil contracts recorded their highest price levels since 13 months ago, earlier at the oil trading session when Brent crude futures traded at $67.44 a barrel and West Texas Intermediate futures touched $63.67 a barrel.
Crude oil bulls are currently taking a grip of the energy market on the account that the world’s largest producer of crude oil has supply concerns, thereby helping to bolster the supply-demand imbalance that’s been the major force in energy markets for the past several months particularly since COVID-19 took hold of the global financial markets.
The black liquid hydrocarbon is running on full throttle bullish bias. Even as the unwind of a once-in-a-century cold snap-in America’s energy hub, extreme negotiations ahead of OPEC’s all-important meeting, or higher U.S Treasury yields are finding an echo in speculative record inflows, taking into consideration that the global economy is moving in the right direction.
Still, oil traders are placing their long bets arbitrarily as assurances from the U.S. central bank on interest rates remaining ultra-low at least for the mid-term boosted global investors’ risk appetite and buying pressures at the energy markets.
Energy pundits are now anticipating that the year 2021 will see the biggest ever surge in oil demand as the COVID-19 vaccination effect globally amplify the deadly virus curve flattening data kept in play in key emerged markets,
It’s fair to say Oil bulls are most definitely having an enviable moment at least for now, as U.S Fed Chief continues to deliver monetary easing policy on maximum overdose, all but guaranteeing the world’s largest economy will continue to carry the flag as the world’s most important oil consumer.