Saudi Arabia aids Oil Bulls, Crude Oil Prices Hit 49 Weeks HighCrude oil prices rallied to their highest price levels since Q1 2020 after a major oil producer, Saudi Arabia agreed to curb more of its oil production in a meeting held with other leading oil-producing countries coupled with a recent significant drawdown sighted on U.S. crude oil reserves.
At press time the London-based oil contract, Brent crude traded at $54.09 a barrel, the highest price level since February 2020. It key in noting Oil bulls pushed Brent crude prices up by 4.9% yesterday.
Also, the U.S based oil contract, U.S. West Texas Intermediate (WTI) futures gained as much 0.6% to trade at $50.24 a barrel. Both major oil benchmarks are trading above $50/Barrel.
75% of retail CFD investors lose money
Oil traders are going long on reports revealing the Saudis; (world’s largest crude oil exporter) announced it would additionally reduce its crude oil output by 1 million barrels per day over the next thereby helped in boosting the morale of oil traders in taking buy positions.
In just two trading sessions, Oil bulls have pushed the price of the black liquid hydrocarbon by about 6% on the exciting outcome of the recent concluded OPEC+ meeting.
The Saudi’s willingness in supporting crude oil prices and halting their supply momentum is a colossal signal hinting that the oil-producing juggernaut will go out of its way in defending oil prices while continually affirming the near-term demand risks, as the new COVID-19 virus variant distorts the energy demand/supply rebalancing in major emerged markets momentarily.
However, as the West Texas Intermediate futures surged to $50 a barrel and Brent trading at $54/barrel, profit-taking is expected to take its course on the bias that Asian refiners will not be getting into long-term deals in 2021 as demand concerns remain fragile meaning oil bulls are not out of the woods yet.