Why Is There A 'Gap' In The Oil Price Chart? - Kakiforex.com - Financial Market Media No. 1 in the World Why Is There A 'Gap' In The Oil Price Chart? Why Is There A 'Gap' In The Oil Price Chart?

May 5, 2021

Why Is There A 'Gap' In The Oil Price Chart?

 Today's opening saw a ‘gap’ on the crude oil price chart that soared higher in the Asian session.

Brent crude futures traded strong around a 2 -month high of $ 69.50 a barrel.

Meanwhile, US WTI trading was up $ 66.30 a barrel, the highest level since March.

The surge follows a significant decline recorded in U.S. crude oil supplies recorded last week.

The American Petroleum Institute (API) reported a drop of 7.7 million barrels, the largest ever recorded since the end of January 2021. This reading is far three times higher than the decline expected by the market.

Investors are now awaiting data from the U.S. Energy Information Administration (EIA) today to see if official data shows a big drop in crude oil supplies.

In addition, the rise in oil prices was also supported by progress in the launch of the Covid-19 vaccine in the United States and Europe, which paved the way for the government to lift some restrictions again.

Market optimism has helped offset concerns over the surge of Covid-19 cases in India where the total number has exceeded the 20 million figure, following an increase of more than 300,000 cases daily since the end of last month.