Sep 09, 2019
Oil Prices Increase – Trade Now
The price of crude oil has increased for the last four days in a row. This commodity is currently trading at around $57.18 a barrel and this price is very close to the important resistance level of $57.5. Beyond this resistance level, the next upside target is $58.75 a barrel, which is the high from the 31st of July 2019. If the price of crude oil succeeds in breaking above this resistance level, we could see this commodity trade at around $60 a barrel. Brent oil is also trading higher at around $62.1 a barrel, which is close to the medium-term critical resistance level of this commodity. If the price succeeds in breaking above $62.5 a barrel, a massive demand for Brent oil could be triggered. In response, the price of Brent oil could trade at $64 a barrel.
The higher oil prices have occurred as a result of the positive outlook for the global economy as well as the current US-China trade war. With politicians and global central banks releasing positive remarks about the global economy, the crude oil demand has increased.
Also, another factor impacting the increase in oil prices is the upcoming OPEC meeting, which will take place on Wednesday this week. All OPEC members, including Iraq and Saudi Arabia, will meet to discuss the cut of oil production by each member in the last few months. This meeting is a standard compliance check for OPEC members. It seems also that, for now, most of the members of OPEC are cooperating.