Crude Oil ETFs Surge Again as Analysts Project More Upside May 24, 2021
Crude oil futures and ETFs are surging Monday amid a projected weather event, a potential issue with resurrecting the 2015 Iran nuclear deal, and new input from Goldman Sachs.
Brent crude oil futures for July rallied $1.71, or 2.57%, to $68.15 per barrel, while the July contract for U.S. benchmark West Texas Intermediate crude futures hit $66.02 a barrel, up $2.43, or 3.75%.
U.S. West Texas Intermediate crude oil futures may also be gaining Monday as speculators bet that a storm in the Gulf of Mexico will result in supply disruptions.
The push higher has been driving crude ETFs like the
This is the third consecutive day that both contracts have moved higher, as states like California continue to struggle under the weight of spiking gas prices.
Analysts are optimistic that crude ETFs will have more fuel to push higher amid an economic recovery.
“The performance of the past few days demonstrates the unbroken faith of the market in healthy economic and demand recovery,” Tamas Varga, analyst at PVM Oil associates said.
“It also implies that the perilous and devastating COVID nightmare engulfing in India, Japan and Turkey, amongst others, is not expected to have a long-lasting impact on economic expansion.”
Crude ETFs Surge Thanks to a New Report, OPEC Projections
Crude oil prices and crude ETFs are surging on Wednesday, after industry data revealed that U.S. oil inventories fell more than anticipated. The Organization of the Petroleum Exporting Countries (OPEC) also lifted its projections for oil demand.
The U.S. Benchmark, West Texas Intermediate (WTI) crude futures, rocketed $2.85, or 4.72%, to $63.44 a barrel, before paring gains slightly on Wednesday.
Analysts were unsure of the future direction for crude on Tuesday, as the market has been in consolidation for nearly a month, trading between $57 and $62 a barrel before breaking out on Wednesday.