Oil Prices Gained Momentum as the U.S. and Eurozone Economy Reopening Picks up Speed

Trading | 5 months ago


Oil Prices Gained Momentum as the U.S. and Eurozone Economy Reopening Picks up Speed - tradeglobalmarket

Oil rose to $68.17 a barrel on Monday as optimism over a strong energy demand grew as the United States and Eurozone economy reopening picks up speed after the second wave of Covid pandemic. As a result, London's Intercontinental Exchange (NYSE: ICE), Brent rose 1.27% to trade at $68.17 a barrel.

BCOUSD - Daily Oil Prices

Demand uncertainty due to the outbreak of the second wave of a new COVID-19 strain in India has affected the oil prices in the last two weeks. India is the world's third largest oil consumer. Yet, oil has shown a significant rally in this week as Europe and United States emerge out of economic lockdowns. As international aviation starts to pick up the speed, oil prices is expected to reach about $75 a barrel.

A recent fall in the U.S. dollar value has also supported the upside momentum in oil prices. U.S. dollar and oil are inversely correlated. A drop in the US dollar value results into increasing the oil price. United States, China and European countries including Germany and France, are expected to drive the oil demand recovery.

The strengthening of crude oil prices is expected to continue in the coming weeks as well. This strengthening of prices will be majorly driven by the growing optimism towards the expectations of a global economic recovery from the pandemic. Therefore, one must look for buying opportunities in crude oil.


 

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