31.05.202205:23 Forex Analysis & Reviews: Oil prices rise, Brent hits 2-month high

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

July futures for Brent on the London ICE Futures exchange by 6:00 p.m. GMT+2 rose by $1.07 (0.9%) to $120.50 per barrel.

The cost of a futures contract for WTI for July at the electronic session of the New York Mercantile Exchange (NYMEX) increased by this time by $1.04 (0.9%) - up to $116.11 per barrel.

At the same time, some analysts believe that the price of Brent may reach $124 per barrel in the near future.

Ole Hansen, director of commodities strategy at Saxo Bank, said that with the reopening of refineries, demand for oil from refineries is likely to increase during a period of severe disruption to global supply chains amid sanctions against Russia. Having risen above the resistance level of $115 per barrel, Brent can now rush to $124.

Shanghai authorities have announced that all manufacturing plants in the city will be able to resume operations from June. Beijing, in turn, said that the spread of coronavirus in the capital of China was taken under control.

The market is also following the negotiations on the imposition of an embargo on Russian oil supplies by European countries. On Sunday, the EU failed to agree on another package of sanctions against the Russian Federation due to Hungary's refusal to support this decision, and consultations will continue this week.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.