Oil prices eased last week after being beaten to the ground by two Hurricanes in the past weeks. Both Hurricanes manage to prompt most refineries to extend their closing time prompting huge decreases and recession on oil prices for about two weeks now. This time around, the International Energy Agency managed to recuperate some losses with their recent announcement.
The IEA managed to help the oil prices as they recently revealed their plan to update their forecasts this year as fuel demands run increasingly high. Brent Crude and the Western Texas Instrument took the center stage as they bullishly recovered and tallying 5-months high.
Brent, WTI Prices
Brent Crude saw a glimmer of hope last week as they manage to emerge from the flood of bearish territory and record tremendous growth right after IEA’s statement. The Brent managed to increase by 56 cents or a total of 1% of $55.72 barrels per day last week and have reached the milestone of a 5-month high on top of that.
One thing to keep in mind for Brent is the fact they have been searing on the charts and hovering at the overbought levels; this means that the prices are expected to be volatile this coming day, even weeks. Overall, Brent managed to rally a bullish run this year and tally a $10 increase per barrels this year since January.
Western Texas also managed to spike on IEA’s renewed outlook for oil demands. WTI’s price was up by a total of 84 cents or a total of 1.7% at $50.14 barrels per day. This has been terrific news for WTI because it has been having the hardest time to get back on its feet and reach the $50 per barrels price since its crumbled performance last August.
IEA’s Announcement
The International Energy Agency has recently announced that they are going to the next level with their estimates for this year’s world oil demand which has bolstered to 1.6 million barrels per day, from the latter 1.5 million barrels per day. Analysts are noting that Iraq and Valenzuela need to be monitored in terms of their outputs and that the revision of oil demand growth forecasts signals a burning anticipation for the quicker pace of market rebalancing.