The oil prices have surged after massive turmoil from past Hurricanes that devastated states in the U.S.A. and prompted refineries to close on a consecutive basis. The whole upbeat attention and surge were made possible after the International Energy Agency announced that their forecasts are to continue with the tightening on fuel demand as it continues to run bullishly.
Oil prices settled down from the previous downtrend and managed to bullishly recover closing to a 5-month high on IEA’s announcement, and also shrugging most losses they had from both Hurricane Harvey and Irma. One more thing that pushed the bullish run was with gulf oil refineries returning and opening for the first time after the two Hurricanes.
Brent crude took the center stage as it tallies tremendous growth and peeking performance; Brent’s prices pulled off on a five-month high. Its future was hovering over at 56 cents increase or a total of a flat 1% at $55.72 per barrel. The price has to peek at $55.99 barrels per day price range in the quarter, tallying the biggest jump on a session since April 13 of this year.
One down side from the increase is that prices remain on the overbought level for the second consecutive day today; investors remained vigilant on possible volatility. The Brent crude also managed to push an overwhelming $10 increase on a single barrel for the last three months and is closing to figures identical to where it started this year.
U.S West Texas instrument was also recuperating some loss it suffered from the past Hurricane devastation; the WTI managed to tally an impressive increase of 84 cents or a total of 1.7%
The WTI also hits the $50.50 level on the previous session leveling to its best performance that was tallied May 25, and it also managed to overtake its 200-day moving average.
The International Energy Agency recently announced that they are raising the bar and its estimates for the 2017 world oil demand which grew to 1.6 million barrels per day from the previous 1.5 million barrels per day. The Barclays Research also noted that "Unrest in Iraq and Venezuela should keep output there in check, regional crude oil contangos have dissipated and stocks are gradually declining,"
While the Senior Energy Analyst at Interfax Energy’s Global Gas Analytics, Abhishek Kumar, “The IEA revising up it's 2017 global oil demand growth forecast, together with persistent weakness in the U.S. dollar index, has prompted bullish sentiment in the oil market. Anticipation is growing that this could quicken the pace of oil market rebalancing,"
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