FX.co ★ Oil may hit new highs

Not only Bitcoin strives to set a new record. In recent days, oil prices have been gaining in value and hitting new highs.

The rally began with a jump to $55 per barrel, a reading that seemed unachievable not so long ago. However, later, the price easily consolidated at the level of $59 per barrel, thus prompting optimism among traders. Analysts had forecast a surge to $60 per barrel and even to $62 per barrel. In fact, the predictions came true quite soon. Thus, Brent crude reached $60 per barrel for the first time since last January. There were several reasons for such a jump. First of all, it was a decline in commercial crude oil inventories in the US and worldwide. Secondly, OPEC+ compliance with pledged oil output curbs significantly improved. According to the data from the Technical and Monitoring Committee of OPEC+, in December 2020, compliance totaled 101%.

In general, experts estimate the current situation as positive. Of course, it is too early to say that oil demand has reached its pre-crisis levels. However, a gradual lifting of containment measures in most countries and a mass vaccination campaign are encouraging market participants. Moreover, a lot will depend on the OPEC meeting that is scheduled for March.