2024-03-25 23:48:19
Oil futures prices rose sharply in Monday’s trading, due to fears of supply disruption in light of the continuing Ukrainian attacks on Russian refineries, and Moscow’s decision to reduce its crude oil production within the framework of the decisions of the OPEC Plus grouping of the oil-exporting country.
At the same time, the decline in the value of the dollar in light of expectations of interest cuts in major economies contributed to the rise in oil prices.
The price of West Texas Intermediate crude, the US oil standard, rose by $1.32, or 1.64%, to $81.95 per barrel for delivery next May. At the same time, the price of Brent crude, the international oil standard, rose by $1.32, or 1.55%, to $86.75 per barrel for delivery next May.
This comes as concerns are increasing about the stability of global supplies in light of the continuing war in the Gaza Strip and the Yemeni Houthi group’s attacks on commercial ships linked to Israel in the Red Sea and the Bab al-Mandab Strait in response to the continuation of the war against the Palestinians.
At the same time, analysts expect global oil prices to continue to rise during the coming period, after recording a strong performance during the first quarter of this year as a result of the continuation of the same factors that pushed prices to rise since the beginning of this year.
Bloomberg News Agency reported that oil is close to achieving the so-called “golden cross” soon during the current week, which is a technical indicator that heralded a further rise in oil prices in the last two times it appeared.
Bloomberg noted that technical indicators do not affect all market participants, of course, but they are part of the broader market conversation. The golden cross indicates that the average movement of oil price during 50 trading days exceeded its average movement during the last 200 trading days. Currently, this difference amounts to 70 cents per barrel.
The last time this intersection occurred for Brent crude, the global oil standard, was last August, and was preceded by a price rise of about $2 from $100 per barrel within a month or so. The last time this golden crossover occurred was in 2020, and was followed by a sustained, prolonged rise in prices.
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