WTI Crude Oil Set to Close One More Week in Green

WTI crude oil is trading somewhat steady on Friday even as UK Brent oil slips below the key level of $70 per barrel, supported by optimism surrounding an improvement in economic outlook and oil demand even as tighter supply helps stabilize oil markets. At the time of writing, WTI crude oil is trading at around $65.79 per barrel.

Crude oil prices are set to end the eighth consecutive week in green amid rising expectations for the global economy to recover from the pandemic-driven damage on account of the rollout of the COVID-19 vaccines around the world. Moreover, geopolitical tensions in the Middle East lent an additional boost to oil prices earlier this week following attacks on Saudi oil facilities raising fears of possible disruption in crude production.

In addition to hopes for economic recovery, crude oil has also been trading bullish lately after the OPEC and its allies agreed to extend deeper production cuts into April. Despite the market sentiment having improved, leading oil producing nations have highlighted reigning uncertainties about the near-term economic outlook as the main reason for holding back on increasing supply soon.

Analysts foresee an extension of the bullish trend in crude oil, bolstered by the possibility that a successful rollout of the vaccine can increase fuel consumption on the back of pent-up demand by consumers. They widely expect the pandemic to come under control by the summer season in the West – peak holiday season that can boost travel and hike up oil demand in the coming months.