On Monday’s session, WTI and Brent futures were at $61.75 and $64.50 respectively. Crude oil prices are finding support from the ongoing optimism from the distribution of vaccines and the stimulus package. However, rising COVID-19 cases and vaccination challenges are offering resistance to the oil prices.
Crude oil prices on recovery
Crude oil prices are on recovery after a significant plunge on last week’s Thursday. WTI futures had dropped from about $64.79 to a low of ~$58.21.
Notably, the decline was a corrective pullback that resulted from crude oil prices rising too fast. Those with an interest to trade oil saw 2021 as the year of economic recovery and subsequent rise in global oil demand. The optimism saw WTI surge from $47 at the beginning of the year to $68 in early-March. During the same period, Brent futures rose from around $50.50 to ~$71.43. From this perspective, a corrective pullback was overdue.
On Monday’s session, WTI futures were up by 0.53% at $61.75. Crude oil prices are finding support from the optimism fuelled by the distribution of President Biden’s stimulus package. Besides, most US states’ administrations are easing the coronavirus-related restrictions. This has added to the positive sentiment on rising oil demand. The progress in vaccination has further fuelled optimism among investors.
However, crude oil prices remain under pressure from coronavirus-related challenges. To begin with, covid-19 cases are on the rise in numerous states within the United States. As of Friday, the 7-day average of additional infections was at 54,666. The figure represents a plateau after several weeks of a downtrend.
Similar struggles have resulted in Brent futures consolidating around $64.50. To begin with, several countries in
