- Oil prices gained traction for the second consecutive session on Monday.
- Prospects for increased energy demand continued to support the rebound.
The price of WTI crude oil extended Friday’s rise and gained momentum. It is climbing for the second session in a row on Monday. The momentum pushed spot prices to two-day highs around the region of 82.45$ during the European session, with the price now looking at the 200 hourly moving average.
The optimistic outlook for world economic growth, together with the approval of a draft infrastructure law in the US $ 1 trillion, they supported prospects for increased energy demand. Apart from this, a measure of the Saudi Arabian state producer Aramco, of raising the price of its benchmark crude for customers in Asia, propped up prices.
This follows the recent decision of the Organization of the Petroleum Exporting Countries and its allies (OPEC +) to keep a cap on crude supplies and further fuel supply concerns, which, in turn, extended support for black gold. Apart from this, a weak action in the price of the US dollar also acted as a tailwind for dollar-denominated commodities, including oil. The rally, however, lacked a strong following.
US President Joe Biden called on OPEC + to produce more to cushion rising prices and said his administration has other tools to deal with the higher price.