Oil Traders Take Long Bets amid Speed of Recovery in Global Energy Market

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The British-based oil contract, Brent crude, the international benchmark for oil, has gained more than 50% since the end of October 2020 and recent price action suggests it’s nearing $60 a barrel for the first time since the worst pandemic in humanity began disrupting the global financial system.

Oil traders are pretty astonished at the speed of the recovery in the energy market given that the COVID-19 pandemic continues to curb global energy demand.

Global equity investors that have stakes in oil multinationals companies have had cause to smile in 2021, after a troubled 2020, for firms as Exxon Mobil Corp and ConocoPhillips printed record gains, making oil stocks the best performers on the S&P 500 in 2021.

In addition, the increased rollout of COVID-19 vaccines is expected at some point to curb the COVID-19 menace in play thereby catalyzing oil prices to yearly highs coupled with improved demand from the world’s largest importer of oil (China) even as the physical market prices rally up.

Oil experts, further anticipate the current bullish trend in play at the energy derivative markets and real physical demand coalesce, will lead to surging and bubbling oil prices.

That said it remains to be seen if the current uptrend can breach above the $60/Barrel resistance level amid strong signs sighted in the oil market most recent price action, showing profit-taking might come in play, provided temporary negative trades break below the $58/barrel barrier.