OIL
Brent oil prices edged up in early Monday trading, reaching the $80 per barrel mark for the first time in over a week. Crude prices have been on a winning streak, with every trading session closing in the green since last Wednesday. Both supply and demand factors are bolstering oil prices as the outlook for the US economy becomes more positive and fears persist of an all-out war in the Middle East involving Iran and Israel. Last week’s US economic data eased fears of a recession in the world’s largest economy, improving the outlook for oil demand. Simultaneously, there are growing expectations that Iran may launch a military operation in retaliation for Israel’s assassination of Tehran’s regional allies. If this occurs, it will likely lead to a rapid escalation that could engulf the world’s main oil-producing region in a conflict, severely disrupting the global crude supply. Against this backdrop, there may be further scope for oil price gains.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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