Analyst: Oil prices closing above $90 after five months may stimulate OPEC to consider increasing production
2024-04-05 19:03:32
On April 6th, Forexlive analyst Adam Button reported that oil prices hit their highest level in five months an hour ago and cooled slightly at the close. The act of purchasing oil out of fear of war between Iran and Israel is a gamble on the unknown outcome, taking unnecessary risks. Overall, the best deal is to eliminate concerns about potential war, which is exactly what the market is doing today. If there is still a war premium, it may be reflected in Monday's market. Anyway, this is the fourth consecutive week that Brent crude oil has risen, and it is also the first time in several months that it has closed above $90 per barrel. $90 is an important level at which OPEC may begin to increase oil production. However, this situation will not happen immediately and there is a lot of room for overshoot. I am cautious about pursuing $100.
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