FX.co ★ Oil market shows different directions in anticipation of the IEA report

On Tuesday, world oil prices showed multidirectional dynamics. Brent crude was rising, while WTI, which was not mainly traded on Monday due to a weekend in the US, is declining.

Originally, March Brent futures was up by 0.6% in the ICE Futures exchange, trading at a price of $ 55.08 per barrel. However, on Monday, the contracts dipped by 0.6%, falling to a price of $ 54.75 per barrel.

At the same time, March WTI futures in the New York Mercantile Exchange (NYMEX) dropped by 0.06% and traded at $ 52.33 per barrel. February WTI futures, meanwhile, jumped by 0.58% and hit $ 52.35 per barrel.

To date, this contradictory mood reigns on the oil market. On the one hand, there is a strong hope that government support will have a positive impact on global economic growth and oil demand, as such will certainly support oil prices tangibly.

Aside from that, demand in China has also increased. Just yesterday, news emerged that the volume of processing of raw materials in the country increased by 3%, which adds support to the oil market.

However, serious problems remain in other areas. The most significant one is the issue on COVID-19, as the persistent rise of infections lengthens economic lockdowns around the world, which seriously affects demand and consumption, and accordingly, the price of oil. At the same time, the slow spread of vaccines across Europe and the US raises concerns about a rapid recovery in demand.

In any case, today, market participants await the report from the International Energy Agency (IEA), which will traditionally be the final one in the list of monthly industry publications. Many are anticipating the forecasts for oil. In particular, about the recovery of oil demand. Clearly, this particular piece of information will deal significant impact to the oil market.