Oil prices continued to show their longest increase in 16 months, supported by positive sentiment in financial markets. The increase continues for the sixth day in a row, informs Bloomberg.
Brent crude rose to around $77 a barrel after a six-day rally that lifted prices to their highest level since mid-October. West Texas Intermediate crude is trading at around $74 per barrel.
Both key oil benchmarks crossed their 100-day moving averages last week, helped by further drawdowns in US inventories. This brought the market out of the long period of stability that had been in place since mid-October and contributed to the intensification of algorithmic buying.
Despite the current growth, the outlook for the oil market until the end of the year remains uncertain. In particular, analysts point to possible risks of excess supply associated with the recovery of production in OPEC+ countries, as well as weak demand from the largest importer – China.
Adding to the unpredictability is political tension as Donald Trump prepares to return to the US presidency, which could affect global markets.
