Oil Prices Continue to Rise
Oil prices are on the rise again, with Brent and West Texas Intermediate (WTI) both up by over one percent for the second consecutive day. This follows a sharp drop of more than five percent during the market close. The surge in the energy market can be attributed to the intervention of central banks in the banking industry following the collapse of several banks in the US and Europe.
Traders are now returning to risky markets, as US officials consider all options to temporarily extend deposit protection. According to Jeff Currie, global head of commodities at Goldman Sachs, the impact of the banking crisis will eventually give bullish results in oil, since it will affect supply more than demand.
The market is currently paying close attention to the financial sector and expectations in relation to the next interest rate hikes by the US Federal Reserve. The decision on this matter will be revealed tomorrow, March 22, through the monetary policy meeting of the Federal Open Market Committee (FOMC).
Oil Prices Charts, a renowned website with more than 150 global oil indices and mixes, reports that a barrel of Brent crude is trading at $74.42 dollars, while WTI is at $68.20 dollars. Both benchmarks rose around one percent from the figures registered on Monday, March 20.
This is good news for oil investors, especially as the market has been fluctuating in recent months due to a number of factors, including the global supply glut and changes in OPEC production.
In conclusion, the rise in oil prices is welcome news for investors, and it will be interesting to see what happens in the coming weeks and months as the market continues to fluctuate.