The situation looked dire for crude oil last year, as the coronavirus lockdowns and other restrictions sent the global economy into a major recession. The demand for oil fell dramatically at some point, which sent US WTI Oil down to $-37.

But, the price eventually reversed up, and and since April last year, crude oil has been really bullish. The global economy is improving, which has increased the demand for energy products, but this strong bullish run still seems a bit strange.

Since the pandemic started, the global elites have been pushing for renewable energy, which is surely going to become the main source of energy sooner rather than later. But for the moment, the markets are not thinking about it much, preferring to focus on the global economy and OPEC.

Crude Oil Chart

OPEC+ is meeting today, and the OPEC+ monitoring committee has recommended keeping oil output at previously agreed quotas through July. This looks like a placeholder OPEC meeting, until they get a sense of how much oil Iran will add. The next meeting is set for June 24.

US WTI Crude Oil has just made a break to the upside. It was trading below the highs of March, but it has now broken above that level and is trading at $68.50. UK Brent Crude has risen above $71, so oil remains bullish once again. Now, the previous resistance at $68 should turn into support, so we will keep an eye on that level if we see a downward pullback.