OPEC's tremendous efforts to stabilise the energy market in the wake of last year's crash, when at one point oil futures were trading below zero dollars per barrel, are starting to pay off. Officials of the organisation had previously stated that members have to join efforts to recalibrate the jolted supply and demand equilibrium; something that they appear to be on track to achieve.
Crude oil bulls have been able to retain control owing to the fact that the previous state of oversupply in the market is now mostly dealt with. Moreover, global demand is slowly but steadily picking up, being driven by vaccine optimism. A clear demonstration of this is the solid manufacturing PMI data in the US from yesterday, which underpinned a pick-up in industrial activity, as well as in new orders.
In other words, there are pretty strong indications to suggest that crude oil can continue appreciating in the near future. However, the price is currently consolidating just below the psychologically significant resistance level at 50.00 dollars per barrel. Arguably, this is the most important benchmark for the commodity since it plummeted below 0 dollars p/b last year.
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