Crude futures were back in rally mode on Friday, February 12 as Brent surged 2.7% to $62.17/bbl, while WTI soared 3% to $59.49/bbl, reaching the pre-crisis price level seen in mid-January 2020.
The rally was most likely attributable to sub-zero temperatures in the US and Europe as well as increased demand for oil. Furthermore, the market apparently reacted with a slight delay to last week’s unexpected drawdown in US oil inventories.
The rally has continued this morning, with Brent up another 1.1% to a new high of $63/bbl, while WTI traded up 1.5%, still holding above $60/bbl. Our Brent price forecast for today is $62-63/bbl.