Brent Crude Approaches 80 USD as Year Draws to a Close

December 29, 2021 07:30

Yesterday, the main European stock indices all rose, whilst Wall Street ended the day with mixed results. After briefly reaching an all-time high during the session, the S&P 500 ended its record-breaking run, closing the day down by 0.1%.

Today, the UK markets reopen after the Christmas break and, despite record rises in confirmed daily cases of Covid-19, we may see a favourable response to Monday’s news that there will be no further restrictions in England before the new year.

Elsewhere, crude oil prices continued to rise yesterday, despite ongoing concerns regarding the rapid spread of the Omicron variant. In particular, Brent crude seems to have its eye set on $80 a barrel, having previously lost this level after the WHO first designated Omicron as a variant of concern on 26 November.

Brent finished yesterday’s session at $78.94 a barrel, with West Texas Intermediate (WTI) not too far behind at $75.98 a barrel.

Currently supporting these prices are disruptions to oil production in Ecuador, Libya and Nigeria.

Furthermore, the American Petroleum Institute (API) reported yesterday that US crude oil stockpiles fell by 3.1 million barrels last week, although this was slightly less than the anticipated 3.2 million. The official government report on inventory is due later today and, again, is expected to show a fall of around 3.2 million barrels.

Brent crude has risen around 53% so far in 2021 and bulls will be hoping that it breaks the psychological level of $80 a barrel before the year’s end. Looking to the new year, investors await the outcome of the OPEC+ meeting on 4 January, where members will decide whether or not to proceed with a production increase of 400,000 barrels per day in February.

Depicted: Admirals MetaTrader 5 – Brent Daily Chart. Date Range: 5 May 2021 – 29 December 2021. Date Captured: 29 December 2021. Past performance is not a reliable indicator of future results.


Depicted: Admirals MetaTrader 5 – Brent Weekly Chart. Date Range: 14 June 2015 – 29 December 2021. Date Captured: 29 December 2021. Past performance is not a reliable indicator of future results.


Trade Commodity CFDs with Admirals

With a Trade.MT5 account from Admirals, you can trade Contracts for Difference (CFDs) on Brent crude, WTI, gold and many other commodities! CFDs allow traders to attempt to profit from both rising and falling prices, whilst also benefitting from the use of leverage. Click the banner below in order to open an account today:

Trade Commodity CFDs

Trade CFDs on Crude Oil, Coffee, Gold, Silver and More!



The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:  

  1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
  2. Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
  3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest.
  4. The Analysis is prepared by an independent analyst Roberto Rivero, Freelance Contributor (hereinafter "Author") based on personal estimations.
  5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
  6. Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
  7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
Roberto Rivero
Roberto Rivero Financial Writer, Admirals, London

Roberto spent 11 years designing trading and decision-making systems for traders and fund managers and a further 13 years at S&P, working with professional investors. He has a BSc in Economics and an MBA and has been an active investor since the mid-1990s