Crude oil prices rallied higher on Monday morning at Asia’s trading session. Brent crude’s price is set to print its fifth straight monthly gains as global stimulus measures have helped in stabilizing crude oil prices, coupled with the continued weakness of the U.S dollar relatively.
Brent crude futures gained 0.63%, to trade at $46.10 a barrel by 0549 GMT; also, the U.S. West Texas Intermediate crude was up by 0.42% to trade at $43.15 a barrel.
Brent crude bulls have been able to keep the black liquid hydrocarbon, relatively higher, printing its fifth successive monthly price rise. Its price peaked at $46.23 a barrel on Aug. 5, the highest level since March.
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WTI is on track for a fourth monthly rise, reaching $43.78 a barrel on Aug. 26 when Hurricane Laura hit the Gulf coast.
It should be noted that Brent crude price in the last few weeks, kept ranging between $44 and $46.
Stephen Innes, Chief Global Market Strategist at AxiCorp, in a note to Nairametrics, gave a detailed analysis of the recent price movement of Brent crude prices. He said:
“But with oil confined to pretty tight ranges after weeks of nothing but crickets, the storm price surge added some life to the markets. After a week-long round trip to $44 and above $46, prices end back where we started.
“Crude oil price continues to be surprisingly range-bound in the context of all the various moving parts.
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“Markets shifted higher on Friday and are receiving support at the Monday open from all the inflation and weaker U.S dollar conversations post-Jackson Hole talk last week.
“I suspect traders remain snared between the often shifting short-term health risk triggered oscillations and more bullish longer-term dynamics.
“As always, the focus remains on the near-term pace of the global economic recovery and the supply/demand dynamic.
“However, with high hopes on COVID-19 vaccines, impressive US economic data, and the “back to school” employment bounce, the medium and longer-term outlook points to a tightening market and higher oil prices.”