Oil lifted on OPEC projections
Oil markets rose overnight and this morning after the US dollar weakened and OPEC lifted its consumption projections higher for the rest of 2021, Market Pulse reports.
Brent crude rallied 1.30% to USD63.90 a barrel overnight, rising to USD64.10 this morning. WTI jumped by 1.40% to USD60.45 a barrel overnight, rising to USD60.65 today.
Despite the noise, both contracts remain solidly in range-trading mode, with Brent crude trapped in a broad USD60.00 to USD65.50 a barrel range and WTI between USD57.50 and USD62.50 a barrel. I note, however, that Brent crude has traced out a series of higher daily lows over the past week. That suggests that oil is quietly gathering momentum for a retest of the upside boundaries of its recent ranges. Given the bullish mania sweeping other asset classes, that is really of no surprise.