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.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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