Crude oil prices resumed the rally on Wednesday and extended gains to the $67,43 figure. After reaching fresh November highs, Brent has settled around the $67 level and looks directionless in the short-term charts, trading with a slight bearish bias on Thursday.
The recent ascent in prices was fueled by a number of factors. Saudi Energy Minister Khalid Al-Falih said he hoped the oil market would be balanced by April and that there would be no gap in supplies amid U.S. sanctions on Iran and Venezuela. By the way, according to reports, OPEC exports set to hit a four-year low this month, mainly due to supply cuts in Saudi Arabia, Iran and Venezuela.
Meanwhile, the API report showed that U.S. stockpiles increased by a relatively modest 1.26 million barrels last week, while gasoline stockpiles declined by 1.5 million.
Despite the rally has stalled, for now, Brent looks set for further gains in the short term amid signs of progress towards the trade deal between the U.S. and China. So, in the coming days, prices could well reach the next barrier at $68.