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After losing up to 10%, oil prices soared 5% this morning
Publish date: 14 Sep 2021, Author : fpesbsi
 

World oil prices shot up in trading this morning. The deep price correction has made investors eager to hunt for oil contracts because they are already cheap.

On Tuesday (24/8/2021) at 06:35 WIB, the price of Brent oil was at US$ 68.75/barrel. Up 5.48% compared to the previous day.

Meanwhile, the light sweet type costs US$ 65.64/barrel. Soared 5.33%.

Previously, the price of the black gold plunged so deep. Imagine, the price experienced a correction for seven days in a row.

In those seven days, the price of Brent fell 8.76%. Meanwhile, the price of light sweet fell 10.01%.With such a severe correction, the price of oil contracts is now much cheaper. This caused a technical rebound, investors flocked to buy up oil contracts. High demand makes prices move north ,it means up.

 

Photo: Motorcyclists queue to refuel Pertalite at the Public Fuel Filling Station (SPBU) in the Pondok Cabe area, South Tangerang, Banten, Thursday (17/9/2020). (CNBC Indonesia/Andrean Kristianto)

In addition, the pressure on global financial markets has also subsided. Last week, the pressure was so great because of the strong sentiment of policy tightening or tapering off by the United States (US) central bank The Federal Reserve/The Fed.

"Oil prices managed to rise along with the strengthening in the stock market. The high interest in risk assets (risk appetite) and the weakening of the US dollar exchange rate made oil prices managed to rise," said Jim Ritterbusch. President of Illinois-based Ritterbusch and Associates, as quoted by Reuters.

However, the outlook for oil prices remains bleak. What else could the cause be if not the corona virus pandemic (Coronavirus Diseasee-2019/Covid-19) which has made many countries re-implement restrictions on people"s activities and mobility.

"We see that oil prices will experience adjustments. It is possible that prices will still be in a bearish trend due to concerns about declining demand in various countries," said Kazuhiko Saito, Chief Analyst at Fujitomi Securities, as reported by Reuters. (Source CNBC Indonesia)