FX.co ★ Oil prices hit multi-month highs

Amid an ever-growing number of global challenges, investors have shifted their attention from turbulence in the oil market to other important issues. Just more than a year ago, oil news was dominating the headlines. Today, this topic is almost off the radar. Actually, this turned out to be good for the black liquid. Being out of the spotlight, oil managed to reach new yearly highs. At one point, Brent oil futures for March jumped above 57 dollars per barrel on the Intercontinental Exchange (ICE). This level was last seen on February 24, 2020. Several factors have contributed to the oil’s growth. In particular, a rapid plunge in the US dollar against all other majors supported crude prices. An extended downtrend of the greenback has fueled oil’s rally. What is more, according to the American Petroleum Institute, US oil inventories dropped by 5.82 million barrels in early January. The data exceeded the forecast of 2.7 million barrels. However, experts warn that there are still certain risks for the oil market. Thus, oil producers may want to ramp up production amid falling supply and higher crude prices.