World oil prices increased this morning, after falling quite strongly yesterday.

analytics605af95505116.jpg

More specifically, May futures for Brent rose 0.15%, thereby costing $ 60.88 per barrel. Meanwhile, May futures for WTI jumped by 0.17% and hit $ 60.94 per barrel.

But in the afternoon, prices decreased again, hitting the lowest levels since February. In ICE, May futures for Brent slipped by 5.9%, closing at $ 60.79 per barrel. In the New York Mercantile Exchange (NYMEX), May futures for WTI dipped by 6.2%, as a result of which oil traded at $ 57.76 per barrel.

analytics605af967adb50.jpg

Obviously, the massive decline was caused by the decrease in demand in Europe brought by new lockdowns in Germany and France. Authorities have decided to extend quarantine restrictions until April 18 in order to curb the fast spread of the coronavirus.

Aside from that, many are concerned about the slow pace of vaccinations. Supply is also limited in many countries, which threatens a delay in the lifting of isolation measures. If lockdowns remain in place, demand for oil will have a difficult time to recover.

But in the United States, analysts predict that demand will start to pick up, especially amid the constant easing of lockdowns, rapid pace of vaccinations and the issuance of financial support to citizens.

Oil refineries are also recovering from the unexpected frost last February, as a result of which supply will begin to increase in the coming months.

Another important factor that affects the oil market is the rebel attacks on oil facilities in the Persian Gulf. If the tension intensifies, prices will surely skyrocket. But during this time that supply is very ample, seeing a massive increase is a bit impossible.

Therefore, to solve the issue, OPEC and its allies agreed to reduce oil production. However, reserves are still gigantic, so investors expect the coalition to extend production caps during the OPEC meeting next week.

In any case, analysts still have optimistic forecasts for oil. They believe that demand will recover in the long-term.

The material has been provided by InstaForex Company – www.instaforex.com

Leave your vote

🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.

As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.