Crude oil prices touched the $30 mark it recorded last week, climbing 5%, as cold weather in Europe and the United States, as well as stronger financial markets prodded traders to take advantage of short positions.
Brent LCOc1 closed at $30.75 a barrel, up $1.50, and is headed for over 6% weekly rise. US crude CLc1 ended at $30.79 a barrel, up $1.26, and is slated for more than 4% weekly gain.
Despite oil price’ surge, analysts cautioned the increase could be ignited by sentiment given the looming overproduction and surging inventories.
The International Energy Agency reported the oil market would remain oversupplied for at least one more year.
The material has been provided by InstaForex Company – www.instaforex.com