Crude prices set for one of the greatest weekly rises in 2016
On Friday, during Asia trade crude prices surged, setting up for one of the greatest weekly revenues this year, as market sentiment is getting more positive notwithstanding ongoing glut.
Brent crude futures traded were worth $45.09 a barrel, a half a dollar rise. Meanwhile, US West Texas Intermediate crude soared 52 cents, trading at $43.70.
With Brent crude up 8% since Monday and also WTI 12% higher since April 18, we may say that this week is set for some of the most radical surges this year. We see that oil’s up by two thirds or even more since its this year’s drops between January and February.
Market participants told that sentiment in the whole commodity complex had already become more confident. As a result, new cash amounts have been pumped into the energy markets by investors, thus increasing crude prices.
Secondly, another crucial factor to be considered is that crude producers take advantage of higher crude prices by simply locking in output.
Analysts expect US crude producers to aggressively hedge.