Following a six-month high in the oil prices while gaining more than 80%, Asian stock markets rallied on Tuesday. Currently, the Brent crude has is trading close to $50 per barrel, on the back of continued supply disruptions and bullish analyst forecasts. West Texas Intermediate has risen 48% or 1.01pc, to $48.20 per barrel.
After plummeting to near 13-year-lows below $30 in February, the oil prices have significantly bounced back. However, they are still well below peaks of more than $100 per barrel approximately two years ago. The last time Brent was $50 was in early November 2015. Nevertheless, according to analysts, the disruptions are short-term and they believe that the market is still oversupplied.
Research firm Capital Economics said: “Admittedly, these disruptions are large enough that the rebalancing in the market expected in the second half of the year may already be happening. However, prices could quickly drop back again once at least some of this supply comes back on stream. In the meantime, global stocks remain ample.”
Japan’s benchmark Nikkei 225 closed 1.1% higher at 16,652.80, the South Korean Kospi index closed at 1,968.06 after continuous instability. In the meantime, the Chinese Shanghai Composite index fell 0.3% to 2,843, while Hong Kong’s Hang Seng wrapped up the day up 1.2%, reaching 20,118.80.