Logo of Phnom Penh Post newspaper Phnom Penh Post - Strong demand confidence fuels bullish oil price outlook

Strong demand confidence fuels bullish oil price outlook

Content image - Phnom Penh Post
Analysis by G-Link business manager Long Samnang.

Strong demand confidence fuels bullish oil price outlook

The price of crude oil fluctuated bet-ween $76.052 and $72.532 per barrel on Monday, while WTI crude rose 0.21 per cent settling at $75.73 per barrel.

Crude oil prices, which have recovered since last week, continued to rise in the Asian market on Tuesday with optimism over the impact of the new Omicron Covid-19 variant.

However, the oil supply shortage, according to investing.com, remains tight.

Investing.com quoted Singapore-based DailyFX analyst Leona Liu as saying: “Though Omicron is spreading faster than any Covid-19 variant yet, a relatively relieving news is that most people infected with Omicron are showing mild symptoms, at least so far. “

It added: “The UK government [as a result] will not introduce new Covid-19 restrictions for England before the end of 2021, according to its health minister.”

Oilprice.com’s writer Irina Slav reported on Monday: “Even as the latest coronavirus variant caused fears of new lockdowns and other restrictions, Saudi Arabia raised its official selling prices for oil for Asian buyers and by a hefty $0.60 per barrel.

“The decision to hike prices demonstrates confidence that demand for oil will remain robust despite the pandemic.

“The confidence was also highlighted earlier this month when OPEC+ [the Organization of Petroleum Exporting Countries and its allies] decided to add another 400,000 bpd to combined production in January despite the US administration’s decision to release up to 50 million barrels of crude in a bid to lower retail fuel prices,” she added.

Overall, oil prices have jumped by more than 50 per cent this year, driven by recovering demand and supply cuts by OPEC+.

Based on these fundamentals, supported by the technical pattern indicators, the price of crude oil this week will hover around $62 and $78.760 per barrel.

Therefore, crude traders can wait to buy at $70.556 per barrel by setting a take-profit function at $75.500 and a stop-loss at $67.443 per barrel.


  • Massive stingrays may live in Mekong’s deep pools

    US scientists have suggested that unexplored deep pools in the Mekong River in an area of Stung Treng could potentially be home to significant populations of giant freshwater stingrays, one of the world’s largest freshwater fish species. This comes as a fisherman hooked a 180

  • PM takes time to meet, greet Cambodians living in the US

    After landing in the US ahead of the ASEAN-US Special Summit, Prime Minister Hun Sen was received by over 1,000 Cambodian-Americans including political analysts who welcomed him with greetings, fist bumps and selfies. Hun Sen also met with analyst Mak Hoeun, who had allegedly spoken ill

  • PM reflects on shoe throwing: Free speech or act of violence?

    Prime Minister Hun Sen on May 17 questioned whether a man who threw a shoe at him while he was in the US was exercising freedom of expression or if it was an act of hostility. Hun Sen was referring to an incident last week when

  • Chinese tourists 2.0 – Coming anytime soon?

    Regional tourism is grappling with the absence of the prolific travellers and big spenders – the Chinese tourists. Cambodia, which has welcomed over two million Chinese tourists before Covid-19, is reeling from the economic loss despite being the first to fully open last November ‘To put

  • Prime Minister Hun Sen warmly welcomed by president Biden

    Prime Minister Hun Sen, as ASEAN chair, and other ASEAN leaders were warmly welcomed by US president Joe Biden as the ASEAN-US summit May 12-13 kicked off today in Washington. “This evening, I welcomed ASEAN leaders to the White House for the first time in

  • Third Makro outlet planned for capital’s Chroy Changvar

    Makro (Cambodia) Co Ltd is set to invest $12.7 million in its third Cambodian outlet, this time in northeast Phnom Penh’s Chroy Changvar district, an area dotted with high-end residential developments, as shopping behaviours continue to evolve in tandem with economic growth. The Cambodian Investment