Trading on Monday (8th), the price of Brent crude oil futures closed above 60 per barrel for the first time in more than a year USDThe level is boosted by the market’s optimism that the US will pass the latest round of economic stimulus measures.
In addition, President Biden’s decision to oppose the immediate lifting of Iran’s sanctions also allowed crude oil prices to find support.
Calin Birch, a global economist at the Economist Intelligence Unit, said, “There are several factors behind this wave of rising tide. The most important thing is the current optimism in the financial market that is currently high due to the launch of the new crown vaccine.”
“In addition, the Biden administration is expected to pass the second round of large-scale economic relief, and the recent strong economic activity in China has raised investors’ expectations for the speed of economic recovery in 2021.”
- The price of Brent crude oil futures for delivery in April rose 1.22 USDOr nearly 2.1%, 60.56 per barrel USD。
According to Dow Jones market data, the latest Brent crude oil futures price rose for the seventh consecutive day, and it was the highest closing price since January 24 last year.
Demand is expected to rise, coupled with OPEC’s production restrictions, these are the driving force for the increase in oil prices last week, Brent crude oil rose 7.8% last week.
- WTI crude oil futures prices for March delivery rose 1.12 USDOr nearly 2%, 57.97 per barrel USD, The highest point since January 21 last year, rose 8.9% last week.
Eugen Weinberg, Head of Commodity Research at Deutsche Bank, said, “Compared with last year, the ICE institutional legal person is more optimistic about Brent crude oil.”
But Michael Hewson, chief market analyst at CMC Markets, said, “But one thing is hard to ignore, that is, higher and higher prices will also suppress consumer demand and stifle any new recovery.”
“Of course, due to price increases, the consensus and discipline among OPEC + members may also be broken, and some countries may break production limits in order to catch up with price increases,” Hewson said.
Birch of the Economist Intelligence Unit said on Monday that global oil inventories are still well above the average of the past five years, and that oil prices “are currently challenging more cautious fundamentals.”
She expects crude oil prices to fall from their current highs in the second quarter, “because the fact that the global economic recovery may not accelerate until the second half of this year.” She estimates that the average price of Brent crude oil this year will fall between 56 and 57 per barrel. USD, An increase of more than 30% over last year.
In Monday’s trading, US stocks and oil prices rose in tandem with the expectation of more stimulus measures from Washington. US Treasury Secretary Janet Yellen said on Sunday that a strong economic stimulus package could accelerate the return of the United States to full employment in 2022.
At the same time, media reported that Iran’s Supreme Leader Ayatollah Ali Khamenei called on the United States to lift sanctions on Iran on Sunday. However, Biden said in an interview that Iran must first cancel its uranium enrichment operations and follow its nuclear agreement to lift sanctions.
Other energy commodities
- The price of gasoline futures for March delivery rose nearly 1.6% to close at 1.6748 per gallon USD。
- Hot fuel oil futures for March delivery rose 2% to close at 1.7478 per gallon USD。
- Natural gas futures prices for delivery in March rose by 0.7% to close at 2.882 per million Btu USD。
