Crude oil prices rallied higher w/w, as the new oil sheriff in town warned over producers and energy speculators, has he specifically targeted short-sellers betting on a drop in crude oil prices.
Brent crude rebounded 8.3% last week, to settle at $43.15 a barrel at its most recent trading session.
Leading energy experts are now anticipating, Brent crude prices could finish around $49/barrel, as major economics start printing impressive economic data, coupled with the recent development of the Covid-19 vaccine, soothing the nerves of oil traders on the fragile demand of gasoline globally, as the major parts of the global economy is still operating at reduced capacity.
It should be noted that over the past week, Brent Crude prices recovered to trade at $43/barrel, after hitting as low as $39/barrel, as recent economic data printed the largest economy stockpiles dropping arbitrarily.
Taking a closer look at Brent crude price pattern, a vital breakout from the wedge pattern is currently seen around the $45/barrel price level.
If the bulls in the coming days keep the price of Brent crude above $42.50/barrel continually, it most likely the bulls will push the price within the $45/barrel resistance level a very important technical test in breaking out from its recent highs.
However, the bulls would definitely have a lot to chew if additional supplies coming from Africa’s largest crude oil reserves (Libya) comes to play, as recent reports reveal its leader plans to pump more oil into an energy market that has become fragile, disrupted by the ravaging COVID-19 virus, coupled with a significant prevalence of low volatility would probably make it challenging for the bulls to breach above $45.50/barrel price level in the near term as traders remained highly worried about crude oil demand/supply rebalancing.
In addition, reports released on Friday showed that the second-largest economy oil imports have been trending much lower this month than in the past four months, while the larger part of Asia have to reduce oil imports in September with energy demand still under pressure.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire