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Oil Price Approaches 2020 High Even as RSI Divergence Takes Shape
2021-02-25 20:30:00
David Song,
Strategist
Oil Price Talking Points
The price of oil trades to a fresh yearly high ($63.79) despite an unexpected rise in US crude inventories, with the technical outlook clouded with mixed signals as the Relative Strength Index (RSI) appears to be diverging with price.
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Oil Price Approaches 2020 High Even as RSI Divergence Takes Shape
The price of oil appears to be on track to test the 2020 high ($65.65) ahead of the Organization of the Petroleum Exporting Countries (OPEC)Joint Ministerial Monitoring Committee (JMMC) meeting on March 3 as it extends the series of higher highs and lows from earlier this week.
Oil prices are set to rise by the fastest rate since the 1970s over the next three years, Bank of America said in a new report, joining the growing group of analysts forecasting a return of oil to three-digit territory.
The average price of Brent over the next five years, however, will be between $50 and $70 per barrel, according to the bank, as quoted by The National.
The bank also said OPEC+ might decide to reverse its production cuts now that Brent is trending above $60, but added that a slow return of U.S. shale to international markets might lead to an extension of the production cut agreement to make sure prices stay higher.
Nigeria engages other countries as OPEC moves to ease production cut guardian.ng - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from guardian.ng Daily Mail and Mail on Sunday newspapers.
Oil prices are set to rise by the fastest rate since the 1970s over the next three years, Bank of America said in a new report, joining the growing group of analysts forecasting a return of oil to three-digit territory