Oil prices

Oil Prices On The Rise As Demand Improves

Tue Jul 20 2021 12:27
After a long period of stability and downward movement, the oil market is once again experiencing a price boom. The price of oil is rising as the demand in the world is also increasing. If you are trading oil futures in various forms, then this is one of the important market news for you. 

No matter if you are a forex trader trading currency pairs. But there can be a correlation between these two trading markets. But if you are a trader who is trading oil, then it is still important for you. As an oil trader, you need to know what moves oil prices. 

So here we are with the complete guide to that. We will let you know how the oil market is working in these tough economic times. But if we say that the pandemic is the only situation where oil prices are rising, there are several other economic, political and social events that are affecting oil prices.  

Let’s dive into oil prices 

We need to see clearly what is driving up the price of oil. Why is the demand for oil increasing? Not only that, but we will also try to analyze the current market prices of oil. Also, we will try to decide how much growth the price of oil has experienced in the last few weeks. 

Current oil price 

Whether you are trading a stock, commodity or oil. The current price is always important for any financial instrument or trading commodity. Whether you are analyzing gasoline or crude oil prices. It is very important to track the traded crude oil prices. 

Oil traders who are out there trading need to know about the market rates along with the US oil oversupply, oil company production etc. know. 

Crude Oil Index Price 

There are different types of oil prices. You need to find out the current price of crude oil to get an idea about the market price. The spot price of oil helps you to analyze the entire market easily. 

WTI Crude Oil 

The oil price in the WTI crude oil category is at $72.34 and the oil industry has WTI crude oil as one of the most important types of oil. Due to the price fluctuations in the overall crude oil market, WTI crude oil also moves just like the other petroleum products. 

Brent Crude Oil 

The energy sector is experiencing a boom in the current time period and the market sentiment is also on the side of the oil market. Brent crude oil price is around $74.09 at the time of writing this post. 

Natural Gas 

The current price of natural gas is $3.21. The world oil market is also driving natural gas rates higher. 

Current price analysis 

There is no doubt that oil demand has been on the rise as prices in the oil industry are also on the rise. In recent months, major oil importing countries have cut back on fuel imports. But now oil exports are up, which is causing prices to move. 

Not only the direct market price, but also the dividend on oil stocks, oil futures, OPEC production, crude oil futures, etc. moved up. 

How much growth has the oil market seen? 

Before we get deeper into the supply and demand of oil, we need to see how much growth there is. Oil futures and options are yielding nice returns after a few months of crude oil declines. But this oil boom is now becoming the reason for huge profits for the long term oil traders. 

Like any other financial market, let's see how much oil and gas has grown in terms of prices. 

Prices above 2 year high 

The current price that oil has reached is over 2 years high. This means that the oil market is at a high if we look at the charting of the last two years. The highest position that oil has reached is the current price. However, we cannot say that this is the golden period for oil. But the price that oil has reached is really high. 


Let's talk about the Brent crude oil. Brent crude oil has increased in price by more than 30 cents. The current price of Brent is $73.64 per barrel and later, it was at $73.3. 

US West Texas Intermediate 

US West Texas Intermediate is also an important benchmark for oil market traders & the US West Texas Intermediate oil is up 25 cents. The increased price is low compared to Brent crude and now the price is $71.10 per barrel. This price is the highest price from the end of 2018 until now. 

Reasons for the increase in oil prices 

As a trader, you may want to know why oil prices are rising. There can be many reasons why you want to know. Actually, you need to know because you don't want to be involved in the wrong moves. The small pullbacks in the market do not help traders. 

Traders want to know the intrinsic value of oil. Therefore, you need to know the reasons behind the oil price rise. The following are the most important reasons. 

More demand 

Obviously, demand is the main factor behind the upward movement of any commodity, currency or stock. Whether you are trading oil, gold or currencies. The more demand you see in the market, the higher the prices will be. 

The same thing happens with the oil market. There is increased demand for oil now that the pandemic situation in major oil consuming countries is under control. 

COVID Vaccination 

Most of the commodity traders out there know how to relate to the outside influences of any market. The global market is directly influenced by COVID -19. 

From the first day of the Covid-19 pandemic, the oil market was affected. Now the situation will be under control in major countries. That is why more covid-19 vaccination leads the oil market to new heights. 

Economic recovery 

The more economic recovery all countries get, the more transportation grows. There is a shortage of transportation, oil consumption. Car sales, travel business in the last few months after the Covid 19 pandemic. During the pandemic, there were situations where there was no economic strength. But now that there is more recovery, there is more consumption of oi. 

Tighten supply 

When demand affects the oil market, so does supply. The International Energy Agency has noted that global crude oil production has fallen sharply in recent months. The lower production caused prices to rise on the world market. 

Summary - Oil prices analysis

The main reason for the rise in oil prices is the global recovery after September 19. However, oil prices are never completely dependent on just one factor. There can be many factors that can move oil prices up or down. 

The economic recovery or the world's health recovery from the pandemic is one side of the story. The other side of the story is lower production which has led to a shortage of supply in the world. The higher demand and lower supply of oil has driven up prices. 

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