<img src=”https://storage.googleapis.com/prod-zenger-storage/image/d20a710e-1ba1-4bcb-a1e1-5c63b27412b9.png” alt=”Crude oil has gained five weeks in a row, almost undetected by investors who are completely focused on the stock market surge fueled by AI stocks and the significant reduction in inflation. GETTY IMAGES “>

Crude oil has gained five weeks in a row, almost undetected by investors who are completely focused on the stock market surge fueled by AI stocks and the significant reduction in inflation.

Such a winning stretch has not occurred in the oil market in over a year and a half, with the most recent instance being eight weeks of advances between December 2021 and February 2022.

On Friday, the West Texas Intermediate (WTI) crude oil surpassed the $80-per-barrel milestone, reaching levels not seen since April 19, 2023.

After falling as much as 45% between mid-June 2022 and mid-June 2023, oil prices have rebounded strongly this month.

Crude has risen by 14% month to date, currently boasting the second-best monthly performance in 2023, only behind January’s 16%, with one more session to go.

Chart: WTI Prices Mark Fifth Week Of Gains In A Row, Rising Above $80 A Barrel

Why Is Oil Rising?

Oil prices have risen significantly as a result of a number of variables affecting both supply and demand.

On the supply side, Saudi Arabia and Russia have made efforts to reduce output, causing oil supplies to tighten. Furthermore, OPEC+ has indicated its willingness to take additional initiatives to assist the oil market.

On the demand side, Chinese officials have pledged to revive its lagging economy, raising hopes for a spike in domestic petroleum consumption. The U.S. has also pledged to buy Strategic Petroleum Reserve to refill stocks at over 40-year lows.

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Produced in association with Benzinga