The price of a Brent barrel surpassed the $70 mark in morning trading on Tuesday, after a rather rocky start to the week. But is $70 Brent here to stay?
Both the WTI and the Brent benchmarks were trading up on Tuesday by almost 3 percent, with Brent reaching the psychologically important $70 threshold shortly after 9:00am EST. This was a dramatic one-day increase over Monday morning’s level of about $67.00 per barrel. The WTI barrel followed a similar upward trajectory.
In today’s volatile oil market, it can be tough to assign any single catalyst to oil price movements; often its many catalysts, other times it’s an undefinable one. While it may be tough to finger one specific catalyst, the weaker dollar, followed by geopolitical unrest over Venezuela, Iran, Russia, Syria, N Korea, and of course China, are likely culminating in somewhat of a perfect storm, helping to lift oil prices.