Oil prices rise to a five-month high

Both Brent and WTI breached the highest levels since November at US$70.76 and US$63.48 per barrel earlier on Monday morning.

Crude oil Source: Bloomberg

The sanctions from the United States (US) on Iran and Venezuela and the ongoing supply cuts from the Organization of the Petroleum Exporting Countries (Opec) drove oil prices to rise to the highest levels since November on Monday.

International benchmark Brent futures were at US$70.74 per barrel at around 1.00am Greenwich mean time on Monday, higher by 25 US cents or 0.37%.

Meanwhile, US West Texas Intermediate (WTI) crude rose by 21 US cents or 0.3%, at US$63.47 per barrel.

Both Brent and WTI breached the highest levels since November at US$70.76 and US$63.48 per barrel respectively, earlier on in the morning.

Upside on Brent and WTI forecasted

Brent has gained 30% this year, while WTI has risen almost 40%, supported by rising global demand, production cuts from Opec and the US sanctions on Iran and Venezuela.

‘The uptrend for crude oil had been underpinned to a large extent by supply factors of late and the weekend update of Libya unrest further adds to this phenomenon,’ said IG market strategist Pan Jingyi.

Prices on the WTI can now be seen attempting a break on the upside with the US$63.54 resistance in view ‘with the bulls strong in control,’ Ms Pan said.

According to energy consultancy FGE, the supply cuts from Opec removes excess inventories, and the market ‘looks healthy’. The consultancy thinks the market is poised for prices of Brent to rise to ‘US$75 per barrel or higher’.


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Speculate on commodities

Trade commodity futures, as well as 27 commodity markets with no fixed expiries.

  • Wide range of popular and niche metals, energies and softs
  • Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
  • View continuous charting, backdated for up to five years

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.