Oil prices surge as demand rises, hitting a three-month high
Oil prices continue to climb for the third consecutive week, with the price of a barrel of oil surpassing $77.50 on Wednesday. This marks the highest level in almost three months, driven by better-than-expected economic data from the US and the recent ban on offshore oil drilling by the outgoing Biden administration.
Furthermore, a decline in commercial inventories, coupled with the government’s reduction in weekly purchases into the oil reserve, has added to the bullish sentiment. Important 200-day moving averages for WTI and Brent are nearing key levels, indicating a potential uptrend.
Based on our analysis, breaking above $75 for WTI and $80 for Brent in the coming week could signal a reversal in growth that may last for months or quarters.
The FxPro Analyst Team