Brent is trading up to its highest since May 2012 now as price crosses above $119 with WTI crude also up $5 to above $116.
Oil bulls are not letting up as prices are soaring amid the whole situation with Russia at the moment. The market was already tight before the whole Russia-Ukraine saga but now, with buyers needing to seek alternatives to Russian crude, it only serves to intensify the situation.
Add that to the trifecta of bullish fundamentals i.e. low inventories globally, supply struggling to meet recovering demand from the pandemic, and a steep backwardation in the curve, it makes for a massive tailwind for oil at the moment.
As mentioned earlier, the $120 to $125 region is the next plausible target and then we'll see if there is more appetite for any further leg higher in oil prices.
