Today we are once again seeing an increase in the value of crude oil. Despite a generally grim sentiment on the global markets amid forecasts for a global economic slowdown, oil offers a ray of hope for investors.
Recent manufacturing reports and news from China, including on the progress of trade negotiations with the United States, have reassured investors that the demand for oil will grow. This is the current upwards driver for oil prices.
The Brent futures for June increased to $68.22, while the WTI managed to cross the important psychological level at $60 and reached $60.57 per barrel.
Factors that have a positive impact on oil prices include OPEC’s continued commitment to supply cuts, as well as US sanctions against two chief oil exporting-countries: Iran and Venezuela. With limited supply and the prospect of rising demand, oil is set to recover.
