Crude oil prices continue to grind higher on Thursday, with Brent has settled around the $79 figure after a brief jump to $79.30 earlier in the day. The price remains in the positive territory and looks set for further rise with the key target at $80.
Talks of $80 Brent help the prices to stay elevated as following the comments by Saudi Arabia, similar statement came from Iran. The country’s oil minister highlighted that oil at $80 a barrel is a “suitable” price. Meanwhile, the expected major decline in global supply as a result of sanctions on Iran further keep the market afloat. The fact that the US crude oil inventories decline for a fifth consecutive week adds to the positive sentiment as well.
On the other hand, it seems that the barrel lacks the upside impetus to challenge the key barrier again, and that the existing bullish drivers are not enough to push Brent to better levels in a more sustained manner. Moreover, the risk of some profit-taking is growing as the proximity to the $80 level deters investors. But as long as the greenback under a substantial pressure, Brent will likely remain on the offensive.