At the time of writing this report, the British-based oil contract, Brent crude traded near $70 a barrel after breaking their highest levels in two years at last week’s trading session. The American-based oil contract, known as the West Texas Intermediate crude traded near $67 a barrel, posting gains of nearly a percent.
Both major oil contracts are on-page for their second monthly gains, with experts foreseeing a robust energy growth outstripping future supply despite growing concerns over the likely return of Iranian crude and condensate exports.
Consequently, macros reveal oil supplies might drop significantly on reports oil companies aren’t rushing to boost their oil production despite rising oil prices even as Brent crude approaches $70 a barrel, with some influential investors already demanding oil majors spend less on their drilling operations coupled with a significant number of environmental activists pushing against fossil fuels, further hint that Iranian Crude supplies might literally not hurt energy demand/supply rebalancing in the long term.
The oil cartel group popularly known as OPEC is expected to stay on course over its plans to gradually ease supply cuts until next month.
Present price actions reveal oil bulls are taking in charge of the intra-day time frame with crude oil prices fluctuates around the breached resistance in the case of WTI, with Oil Bulls turning $65 a barrel as their minor support, oil bulls are waiting for more motivation as oil prices resume the expected bullish trend for the upcoming period, with its next targets located at $67.95 a barrel.
This article was originally posted on FX Empire
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