US crude barrel crosses $ 60 mark

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The American barrel of West Texas Intermediate (WTI) – a benchmark crude in the United States – exceeded, on Monday, the bar of 60 dollars (49.45 euros) which had not been crossed in session since February 20, 2020 , at the beginning of the Covid-19 pandemic, an increase due to current concerns about the supply.

The article of March 30, 2020: Oil prices at their lowest for 17 years

As Texas is in the throes of a cold snap that investors believe could weigh on production, a barrel of WTI for March delivery climbed 2.19% on Monday to $ 60.77 (50 euros) in trade electronics in Asia.

Crude has been trending higher for several months as a result of renewed optimism about the outlook for the global economy, the hope raised by the vast US stimulus package, the belief that the slowing pace infections and the launch of vaccination campaigns will restore a form of normality, and therefore encourage demand.

The Covid, a dominant factor

Last week, Brent had already crossed the $ 60 mark. Both contracts have taken 20% since the start of the year.

The Saudi announcement last month of a drop in production in February and March also supported prices.

Watch the video: Why has the price of oil fallen?

Very recently, the price of WTI has also been boosted by forecasts of a possible drop in production in Texas due to the cold snap that shut down some wells, caused power cuts and disrupted transportation.

“The cold snap, the additional Saudi cuts, the promises of the US stimulus package are all having an effect,” said Vandana Hari, of Vanda Insights in Singapore. “But the most important factor, on which the skeptics have turned a blind eye, is that the Covid is on the way back to the planet, and has been for more than four weeks already.”

newsoceon.com