On August 7th, crude oil made a considerable rally in London in New York. Therefore, oil futures reached their 12-week highs.
The IPE Brent Crude futures for September delivery strengthened by 2.2% up to $112/b in London (Continental Exchange Futures Europe).
At the same time, the Light Sweet Crude Oil futures for September delivery gained 1.6%, thus reaching $93.67/b in New York (NYMEX).
If to consider the market performance over the last 3 days, Brent appreciated by 5,7 % while WTI (Light Sweet) gained 7,4%.
Reasons for the rally:
· Fears of higher demand for energy carriers
· Measures taken by the Federal Reserve and the ECB
· Shorter global supply of oil
· Storms in the Gulf of Mexico
· US Dollar
Moreover, US experts anticipate a 200-300K barrels decline in crude oil reserves.
According to , the chart of Brent oil shows wave “palisade”. The price is currently forming waves 4 and 5 of the 5-wave pattern represented by wave 3 or C of a bigger wave level. The current scenario is expected to come to an end later this week.
