2024-03-25 22:58:06
Singapore (dpa)
Analysts expect that global oil prices will 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 the last two times it appeared. Bloomberg noted that technical indicators do not affect all traders in the market, 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, and the last time this intersection occurred for Brent crude, the international oil standard, was last August, and was preceded by a price increase of about $2 from the price of $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.
Bloomberg News Agency indicated that the rise in Brent crude oil by 12% since the beginning of the year may mean that the golden cross heralds more gains for oil prices during the second quarter of this year.
However, this golden cross could indicate a period of decline for crude prices, as happened after the two previous crosses occurred in May 2019 and January 2020.
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