April 12, 2021

Oil market outlook: bumpy ride ahead?

April 12, 2021

trade
Content:

Oil market outlook: bumpy ride ahead?

Oil market outlook: bumpy ride ahead?

2020 has been disastrous for the oil markets, however, it appears that oil has recovered most of its losses and is now hovering near pre-pandemic levels. In today’s article we will take a look at oil’s recent performance and explore the opportunities that may lie ahead.

January isn’t even out yet and 2021 is already looking much brighter than its predecessor and especially for oil that was devastated by the global lockdowns before literally collapsing overnight.

Vaccines are rolling out, the markets are cheering and the outlook is generally brighter across the board. In fact, crude oil has rallied by more than 11% since the beginning of the month.

It may be too soon to tell if the market is completely out of the woods, however, with most signs – so far – pointing towards the upside, we may see the oil market’s newfound strength continue well into the New Year.

Demand outlook

All commodity markets are particularly sensitive to supply and demand shocks and oil’s response to the pandemic, as dramatic as it were, was largely expected.

However, it was also expected that as soon as demand picked up – with the coming of the New Year and the exceedingly promising reports on the efficacy of the leading vaccine candidates – we would see a miraculous recovery.

 

Ready to start Online Trading? Open an account today        

Join CMTrading, the largest and best-performing broker in Africa, and discover more opportunities with an award-winning broker. Register here to get started            

Follow us on Facebook, Instagram, LinkedIn, Twitter, and YouTube 

Disclaimer
Trading involves a significant risk of loss and is not suitable for all investors. It’s important to understand the risks and seek advice from an independent financial advisor if necessary.

The information provided here does not constitute investment advice.

Facebook
Twitter
LinkedIn
WhatsApp
Email

Content:

Follow us on:

Start Trading Now!

Recent Posts

Guide for Bitcoin Trading in South Africa

Bitcoin is a groundbreaking digital currency that has taken the world by storm. It’s also become a top choice for many South Africans looking to diversify their investment portfolios. Let’s explore the dynamics of Bitcoin

Read More »