BitfinityFX Broker Talks About Brent Oil Hits New Peak
London, England, 2nd Nov 2021, ZEXPRWIRE, BitfinityFX broker in a meeting remarked on Friday’s global stock gains, which followed Friday’s strong US earnings and London hitting a post-pandemic peak as Brent oil rose to its highest level in three years owing to renewed demand from reopening economies.
The market, according to him, continued to rise, with Asia and European equities also improving as investors were pleased by better-than-expected data indicating that the US recovery continues despite inflation concerns and the impending end of free money. So far, the earnings seasons in progress have provided a perfect start.
“We’ve seen outstanding figures out of the US banking sector this week. The remaining Wall Street behemoths will publish their results today.”
Brent oil tops $85:
Due to the ongoing coal and gas shortages and the desired boost, North Sea Brent crude rose to $85.10 per barrel. “BP and Shell… are both up more than 20 per cent in the last month as oil and natural gas prices have soared,” said the broker.
Since May, Bitcoin increased close to $60,000 for the first time after a report claimed that the US Securities and Exchange Commission was nearing approval of Bitcoin futures exchange-traded funds.
The broker adds on saying Federal Reserve and the Bank of Canada are among those that have already started — or plan to start soon — reducing the extensive financial assistance they’ve given since the epidemic began, which has aided economies to recover and equities reach all-time highs (or multi-year highs).
Oil prices reached three-year highs as the pandemic-related demand and disruptions in production continue, despite concerns that inflation is rising.
The market this week:
It was a good one again. The Brent oil price breached $80 after it rose 1.8 per cent on Friday to close at $80.48 a barrel — its highest level since November 2014. According to the broker, Brent oil is up more than 20 per cent this month alone and has rallied by around 85 per cent from its post-pandemic lows.
Oil prices have been at their highest level since mid-2015 when the oil price in early July collapsed to $43.58 per barrel — its lowest in over six years.
“There’s no telling when the recovery in energy markets will end,” said BitfinityFX’s broker, “the product is still in high demand, and OPEC production cuts are still in place, which is why traders should focus on the upside.”
Inflation:
The broker mentions the upheaval in the energy sector, coupled with price hikes that have outpaced general inflation, has put more significant strain on finance executives to act sooner rather than later.
“The crypto market has been on a tear since the US Senate hearing on virtual currencies came to a successful conclusion for the market sentiment,”
said the broker.
This is supported by some experts who claim that bitcoin… maybe about to rally more than 20% in value.
“If I would have to guess, there will be a big dip in the next couple of days. There is nothing but good news for Bitcoin, and as soon as people realize that… we should see another record high.”
This could be due to discussions on other cryptocurrencies like Ripple and Ethereum (which had falloffs). The broker
Mainstream Acceptance
The broker even says that cryptocurrency is now gaining more mainstream acceptance with the institutional trading communities.
While we remain cautious of cryptocurrencies such as Bitcoin, it is worth noting that any time there is a crisis or perceived threat to an established system, initial coin offerings and cryptocurrencies have tended to benefit, says the broker.
Digital currencies, like gold and silver, tend to perform well when investors ‘fear the system is failing. While we remain cautious of cryptocurrencies such as Bitcoin, it is worth noting that any time there is a crisis or perceived threat to an established system, initial coin offerings and cryptocurrencies have tended to benefit”.
“We are cautiously optimistic that there’s a positive movement here.”
The current state of affairs:
The broker mentions that although the European Central Bank (ECB) President Mario Draghi recently said policymakers.
“There is no current need for international monetary policy coordination, despite the impact of the pandemic…
…Nevertheless, central bankers in many countries are trying to stop asset bubbles that easy money policies might cause.”
A high-ranking official said. “The Federal Reserve Bank has already started selling securities this week to return its holdings to pre-pandemic levels,” said the broker, adding:
“The US economy is still expanding at a moderate pace, but this has been enough for investors to shrug off inflation concerns and focus on earnings growth.”
Conclusion:
The broker himself is not very optimistic. He says it’s just a matter of time before the market realizes that there are some severe cracks in this recovery which will cause investors to rethink their positions. We’re also expecting oil to drop. Further, he adds.
The market has priced in all the positives and will begin to be concerned about potential issues on the horizon, which are already starting to appear.
He believes that the current market strength reflects what could be a final bullish attempt to end record highs.
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Source: BitfinityFX Broker
