Brent oil prices opened higher today than they closed on FridayOIL
Brent oil prices were almost 6% higher when the market opened this Monday, comparative to the close of Friday, with subsequent gains taking the cost of the barrel to the highest level in almost a month. With a move that caught the markets off guard, OPEC+ countries announced the intention to cut production by more than one million barrels per day. With the fizzling out of the banking crisis and the return of optimism to the markets, the price of the barrel was already showing signs of recovering, and the OPEC+ announcement compounded this dynamic, taking oil prices back to pre-banking-crisis levels. The question now being asked by oil traders is: will this mini-rally in the price of the barrel be sustainable? The reduction in offer is not guaranteed to support prices, because on the other side of the equation demand levels remain uncertain. Central banks remain focused on bringing down inflation, and higher interest rates could further downgrade the outlook for economic growth, and therefore dent oil demand.
Ricardo Evangelista – Senior Analyst, ActivTrades
