Logo of Phnom Penh Post newspaper Phnom Penh Post - Crude oil price shows positive trend as global economy picks up

Crude oil price shows positive trend as global economy picks up

Content image - Phnom Penh Post
Analysis by Golden FX Link Capital business manager Long Samnang

Crude oil price shows positive trend as global economy picks up

The price of crude oil hit $80 a barrel on Tuesday – the highest in three years – signalling prices may continue to rise as the global economy shows signs of recovery.

“Oil prices gained on Monday for a fifth straight day, with Brent at its highest since October 2018 and heading for $80, as investors fretted about tighter supplies because of rising demand in parts of the world,” Reuters reported on Monday.

The market witnessed positive crude prices, with Brent rising to $79.53 per barrel, having raised in three consecutive weeks, while US crude futures hit $75.45 per barrel, the highest since July.

Meanwhile, global supplies have tightened due to the fast recovery in fuel demand after the outbreak of the Delta variant of the corona-virus and Hurricane Ida, which hit US production.

Dailyfx.com technical analyst Tammy Da Costa said: “Over the past few weeks, oil prices have continued to proceed along an upward trajectory as commodity shortages remain a key concern for global economies.

“As the vaccination programme continues to gain traction, Europe and China’s energy crisis have [sic] continued to support the bullish narrative pertaining to oil prices over the past month.

“With inflationary pressures on the rise, heightened volatility and production concerns have supported the strong rise in commodities, pushing Brent crude to $80, a level last tested in 2018.”

Oilprice.com oil analyst Tsvetana Paraskova said on Monday: “Just ahead of the winter season, Europe’s natural gas crunch created a snowball effect in global energy markets.

“What started as very low gas inventories in Europe during the summer is now spilling over into oil, natural gas, and coal prices all over the world, with no quick fix or signs of a major short-term correction in sight.”

It seems that the price of crude oil could fall if OPEC and its allies intervene on output gains.

Based on the current fundamentals, the price of crude could reach $85 per barrel anytime soon. However, for this week’s trading recommendation, investors should consider buying crude oil in the range of $72 and $80 per barrel.

Content image - Phnom Penh Post


  • First Cambodian woman graduates from Japan’s NDA military academy

    A few years ago, Meach Sithyka Jessica became the first-ever Cambodian woman to graduate from the US Military Academy at West Point, and since then her courage and determination has served as an inspiration for other Cambodian women. Similarly, Ly Chansocheata became the first Cambodian

  • Construction begins on $1.5B Kampot seaport

    The International Multi-Purpose Logistics and Port Centre, principally invested by Kampot Logistics and Port Co Ltd and projected to cost $1.5 billion, has officially broken ground in Bokor town, Kampot province. The multi-purpose logistics and port centre, located in Prek Tnaot commune, will be built on

  • Cambodia eyes key role in electronics, auto hubs in SEA

    Two roadmaps, part of the LDC’s economic diversification plan, were designed to see it through its migration process, but experts say the journey might be arduous, particularly in the presence of two established hubs in the region By 2028, Cambodia hopes to have exited the

  • Hun Neng, lawmaker and PM’s brother, passes away aged 72

    Hun Neng, chairman of the 4th Commission of the National Assembly, has passed away from heart disease at the age of 72 on the afternoon of May 5, according to the Ministry of Information. Hun Neng is the older brother of Prime Minister Hun Sen, and was

  • CCC team off on US business trip

    The Kingdom’s leading economists and private sector representatives have called on the US to renew its tax preferential status for Cambodian exports, as a Cambodia Chamber of Commerce (CCC) delegation departed for a weeklong business visit to the US, where they will meet with

  • PM meets with US business giants

    Prime Minister Hun Sen has met with a number of major US companies who have expressed interest in investing in Cambodia, in a meeting convened by the US-ASEAN Business Council (US-ABC). A delegation of companies – including Amazon, Meta, Chevron, ConocoPhillips, ExxonMobil, Ford, Visa and Pernod