Market Analysis

Brent oil prices hedged higher during early Wednesday trading

FOREX

Brent oil prices hedged higher during early Wednesday trading. The release of US oil inventories data revealed an unexpected decrease of 4.8 million barrels over the course of the previous week. This surprisingly large drawdown overshadowed expectations of a reduction in demand, caused by the reinstating of Covid-related restrictions in China. Another factor also driving the recovery in oil prices is the uncertainty over how Russia may react to the expected imposition of a cap on its oil prices, which is being planned by the G7. Should such plans go ahead, Moscow is likely to react by further restricting exports, in a move that could create scope for further gains in the price of the barrel.

Ricardo Evangelista – Senior Analyst, ActivTrades                           

Source: ActivTrader

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