The price of crude oil has risen constantly for several consecutive days since Monday last week, hitting a 13-month high after top exporter Saudi Arabia signalled an additional one million barrel per day cut in February and March, despite a decision at the OPEC+ meeting last Tuesday to increase output, according to Oilprice.com.

Golden FX Link Capital business manager Chhea Chhayheng said the up-trend in the price of crude oil was not just down to these factors, but also due to other positives from world economy-driving countries.

Expectations of an additional US stimulus package have been boosting the price of crude oil to bullish levels, with approval of the Covid-19 crisis stimulus package set to trigger demand in oil for economic growth, Chhayheng said.

“Investors are . . . pinning hopes on oil demand recovery when Covid-19 vaccines take effect. A weak [US] dollar has also helped shore up prices of commodities,” Reuters reported on Tuesday.

Meanwhile, China has also become a key driver in the oil market rebound.

The number of tankers sailing to the Asian giant jumped to a six-month high on Friday.

The Chinese National Offshore Oil Corporation aims to spend a massive $13.9 billion to $15.5 billion this year on boosting domestic oil exploration and production, likely another factor in the oil price surge.

For technical analysis, based on the daily oil price chart, there is a strong upward trend that indicates strong movement in the oil price.

The price is moving above the average $40 exponential, which is also a sign of high demand for crude oil.

For oil trading this week, Chhayheng advised that as the price of crude oil has been moving in the range between $51.77 to $57.70 per barrel – indicating a rebound in demand for oil and a market rebalance – traders should buy when the price of oil is at $57.00 a barrel, setting the take-profit function at $59.50 a barrel and the stop-loss function at $55.50 a barrel.