Posted by Adegbotolu Kehinde Erastus -
Scope Markets

Key Points

  • Oil prices reaches $60 a barrel for the first time over a year
  • Saudi Arabia pledges to tighten supply cuts
  • China’s demand also key factor in pushing oil prices higher

Crude oil prices hit $60 per barrel for the first time over a year. The year 2020 saw the price of crude oil crash to $0 per barrel due to the impact of the coronavirus pandemic as government lockdowns took effect on businesses and travels in order to curb the spread of the virus, also an oil price war between Saudi Arabia and Russia which saw the 2 nations failing to agree on production levels caused an oil glut which was also a contributing factor to a collapse in prices.

However, prices have reversed and continued to surge higher towards pre pandemic levels amid optimism of mass vaccination and US stimulus check. Analyst expect oil prices to reach higher levels once vaccination roll out hit its peak as this will give way to economic recovery with hospitality and travels businesses resuming operations paving way for a demand in crude oil.

Saudi production cuts which is backed by OPEC and China’s demand has also been a contributing factor to rising oil prices. China’s oil demand has jumped to a 6 month high in January after tanker tracking and data from ports recorded imports to be at around 12 million barrels per day against December’s data of 9.06 million barrels per day.


crude oil

Price is has risen aggressively from $35.64 which was the low of October 2020 and has maintained momentum above an ascending trend line. Currently price is at $60.78 resistance level which was an intraday high in January 2020.  Considering the current fundamental factors boosting the demand for crude oil, should $60.78 resistance level fail to hold then it is likely price will rise towards $65.73

 Adegbotolu Kehinde Erastus

Research & Markets Analyst

Scope Markets

Share this article:

Disclaimer: The article above does not represent investment advice or an investment proposal and should not be acknowledged as so. The information beforehand does not constitute an encouragement to trade, and it does not warrant or foretell the future performance of the markets. The investor remains singly responsible for the risk of their conclusions. The analysis and remark displayed do not involve any consideration of your particular investment goals, economic situations, or requirements.

Funding Methods

Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets


Scope Markets
Scope Markets
Scope Markets
Scope Markets

Scope Markets offers institutional and retail trading services to businesses and traders worldwide. Our top management team has more than 20 years of experience in the industry, and we are proud of the solid partnerships we build over the years. Whether it's a business or individual, Scope Markets has a wide range of trading solutions that are compliant, flexible, cost-efficient, innovative, and place the client first.

Contact Us

Registered address:
5 Cork Street, Belize City, Belize C.A.


+44 2030 516959

Risk Disclaimer

Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors. Trading in financial instruments may result in losses as well as profits and your losses can be greater than your initial invested capital. Before undertaking any such transactions, you should ensure that you fully understand the risks involved and seek independent advice if necessary. Please read and ensure you fully understand our Risk Disclosure.

Legal Information

Scope Markets Ltd is a company registered under Belize with Registration Number 145,138. Scope Markets Ltd is authorized and regulated by the International Financial Services Commission of Belize (“IFSC”) under the license numbers 000274/222 and 000274/221. The registered address of Scope Markets Ltd is, 5 Cork Street, 1708 Belize City, Belize.

Restricted Regions

Scope Markets does not offer its services to the residents of certain jurisdictions such as EU Member States, Iceland, Norway, Liechtenstein, Afghanistan, Cote d'Ivoire, Cuba, Iran, Libya, Myanmar, North Korea, Sudan, Puerto Rico, USA, Syria, and Ecuador. Please check Restricted Countries.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

© Copyright 2020 Scope Markets. All Rights Reserved.