Crude Oil Prices Soar

Market News

Global crude oil prices soared in yesterday's trading session following the decision taken by OPEC+ to reduce global oil production limits as one of the successful market price control strategies.

The futures market in New York rose 1.7% in Tuesday’s trading session and now U.S. Oil is trading at around $ 62.69 a barrel. However, concerns over the re-emergence of the Covid-19 pandemic remain a threat to the stability of the fuel price.

WTI formed a “Double Top” pattern before entering into a consolidative phase on the 4-hour chart. An immediate resistance level can be found at US$ 63.83 - the 61.8% Fibonacci retracement. An immediate support level can be found at around US$ 61.15 – the 100-period SMA line. The MACD indicator has formed a bullish crossover beneath the neutral midpoint, suggesting that bullish momentum may be accumulating.

In India, the world's third-largest oil consumer, it is now the country most severely affected by the Covid-19 pandemic with the latest infection rate reaching 362,902 new infections yesterday with a death toll of 3,285 people.

This situation will certainly also affect the global demand for oil as India is one of the world's largest consumers. The Indian Rupee is currently plunging to its lowest level following concerns over the current situation of the Covid-19 threat.

While the development in the United States is slightly different where the demand for the fuel is reported to be higher and highest compared to other major countries in the world. BP's managing director also mentioned that China was also reported to be receiving high demand for oil due to the economic situation in the great wall country.

"You can see strong demand in the United States and China at the moment," said BP CEO Bernard Looney in an interview with Bloomberg Television. "America is back to normal. Vaccination programs continue to run in Europe. The next question is what will happen to other countries after this.”