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Lovisa Alvin
Lovisa Alvin
Articles (40) 

Investors Turn Bullish as Oil Prices Continue to Ascend Higher

Where will oil prices go from here?

July 17, 2017

As you likely already know, commodities often drive the market. Of course, there is one commodity that tends to be more impactful than the rest and that is oil. Oil is responsible for driving economies all around the world, especially in the Middle East. It has also become prevalent in the United States and the Western world in general. When markets are low, you can almost guarantee oil prices are sinking as well. This week has been surprisingly good for both. During the past trading week, oil was able to acquire gains five days in a row. This is not a coincidence.

Friday was definitely volatile for the mass majority of the market. Nevertheless, WTI Crude and Benchmark Brent had an exceptionally good day. On Friday, Brent crude futures climbed by more than 50 cents. By the middle of the trading day, the price was nearly $49 per barrel. WTI Crude performed equally well. WTI Crude futures climbed 1% to top out at $46.54. During the day, Baker Hughes released the weekly oil rigs count. This showed the U.S. increased rigs by two to top out at 765 rigs total. This led to a brief pullback, but the market bulls remained in full control.

Nigeria also released important information regarding their exports of Bonny Light crude. A force majeure declaration on the company’s exports pushed prices higher earlier in the day. Journalists seeking a Vietnam visa on arrival confirmed the country was ready to increase their imports of crude oil, which could lead to an abnormal spike on Monday. Only time will tell what impact that has on the commodity and the day’s trade.

For the entire week, contracts for oil climbed approximately 5%. This was attributed to increased demand reported by the International Energy Agency. The markets were also encouraged by China’s intention to increase oil imports in the coming year. Finally, the U.S. has experienced a decreased crude supply. This combination helped to push the future prices for crude oil higher and higher. Whether or not the market will be able to hold the gains is the biggest question. Oil prices have remained abnormally low since the beginning of the year.

Many analysts and investors believe this could change in the coming months, however. One thing to note is the IEA has put out a dire warning regarding oil supplies. It is recommended tourists get a visa on arrival Vietnam, while also stocking up on gasoline. This is a necessity because the IEA believes conventional oil exploration could drop in the near future, leading to a severe shortage of crude oil and other fuels.

If this happens, there is no doubt that oil prices will climb rapidly. Therefore, right now may be the best time to add oil related stocks to your portfolio. Just hold on tight because it is likely the recent volatility will remain for quite some time.


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Comments

LwC
LwC - 2 months ago    Report SPAM

“Journalists seeking a Vietnam visa on arrival confirmed the country was ready to increase their imports of crude oil, which could lead to an abnormal spike on Monday.”

“It is recommended tourists get a visa on arrival Vietnam, while also stocking up on gasoline.”

Hahahaha…Ohhhh kayyyyy, whatever.

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