- Crude oil prices rise to new multiyear highs, lifted by healthy world economic growth prospects and continued production curbs; U.S. WTI crude +1.5% at $64.57/bbl, Brent +1.6% at $70.13/bbl.
- The IMF this week upwardly revised its forecast for world economic growth to 3.9% for both 2018 and 2019, up from its 3.7% outlook on its last update in October, which "further improves the already fairly rosy demand prospects on the oil market," Commerzbank (DE:CBKG) analysts say.
- “It is not a far-fetched thought to expect global oil demand and oil-demand growth to follow suit shortly,” says PVM Oil Associates analyst Tamas Varga in response to the IMF estimates.
- Other bullish factors include an expected 10th straight weekly drawdown in U.S. stockpiles when the U.S. Energy Information Administration releases data tomorrow, as well as signals over the weekend from Saudi Arabia that OPEC could extend its production cuts beyond 2018.
- ETFs: USO, XLE, OIL, UWT, UCO, VDE, XOP, DWT, ERX, OIH, SCO, BNO, DBO, ERY, DIG, BGR, GUSH, DTO, FENY, USL, IYE, DUG, DRIP, IEO, FIF, DNO, NDP, PXE, OLO, RYE, PXJ, SZO, CRAK, FXN, OLEM, WTIU, DDG, OILK, NANR, OILX, WTID, USOI, USOU, USOD, FTXN, JHME, UBRT, ERYY, DBRT, ERGF, USAI
- Now read: Warning Signs From S&P 500 And Energy Sector Correlation
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