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What pushes oil prices to new record highs?
25-05-2020 20:23
What pushes oil prices to new record highs?
What pushes oil prices to new record highs?

Oil prices have gained momentum and are hitting new highs. Since the beginning of the week, Brent crude has been soaring. The price has already broken the level of $33 a barrel. The last time Brent crude reached such levels was in April. In fact, analysts lost hope for a recovery after a slump logged in May. However, the market is really unpredictable and it often surprises its participants. The fact is that the demand for oil is almost the same and it is too early to say that the new OPEC+ deal is already bearing fruit. Thus, these reasons are not enough for such a jump. Of course, cautious lifting of lockdown measures imposed to contain the coronavirus spread has a positive effect on the demand recovery. Besides, the US oil output reduction triggered by quite natural reasons also contributes to the demand mounting. However, the current momentum is not strong enough to push prices to new record highs. Nevertheless, at the moment, WTI costs more than $30 a barrel. A month ago, US light crude oil futures were trading in the negative territory. 

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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