Oil prices continue to extend gains, conquering new highs. The quotes have reached their highest level in seven years, which is not surprising. The energy market remains excited. Against this background, oil prices may well reach $100 per barrel, the level of 2014. Therefore, the next question arises. Will the quotes surge to the 2008 level, that is, $140 per barrel and above? For now, there are only few arguments in favor of such a spectacular increase, but this scenario cannot be excluded. Against this background, Brent crude oil futures continue to drift around its highest levels. The previous day was also marked by trading excitement. Market participants once again aimed at hitting local highs. As a result, the benchmark came close to the peak of 2018. Even though Brent crude is extremely overbought and a correction is long overdue, its upside momentum is still strong. If the price consolidates above $86.71 per barrel, it will most likely approach the 2014 levels. In the meantime, the price is just approaching this value, trading around the level of $84 per barrel. As for WTI crude oil, the market continues to ignore technical analysis tools and the asset remains highly overbought. Trading excitement keeps driving the price up. According to the chart, the US benchmark overcame the psychological level of $80 per barrel and then approached the values of October 2014. If investor enthusiasm runs high, WTI crude oil will most likely extend gains and reach $90 per barrel. In the light of the oil price rally, the outlook for the ruble seems to be rather upbeat. True, its growth initiated at the beginning of the month stalled yesterday. The ruble went down slightly. However, this decline can hardly be considered a clear signal for a full-fledged correction. The reasons are the same. The ruble is being supported by energy shortages and the Moscow Exchange index. Until the situation changes dramatically, the Russian currency will probably continue moving in a bullish trend. In the meantime, the dynamics of the dollar/ruble currency pair are currently sluggish. Despite yesterday’s rise in oil prices, the quotes failed to fall below the level of 71.5. As a result, the pair rebounded slightly and then stalled. In order for the ruble to extend gains, the price needs to fix below 71.5 rubles per dollar. If it fails, the pair is expected to enter a technical correction. The euro/ruble pair’s trading chart also shows fading downside momentum. The price found a pivot point around the level of 82.80, rebounded slightly, and then stalled. Currently, the pair is drifting in a range between the levels of 82.80 and 83.30. The trading instrument is highly oversold. Thus, the pair may well enter a technical correction. However, if the price fixes below the level of 83.50, the European currency will most likely extend weakness. In any case, the ruble is unlikely to suffer sharp losses until the situation in the commodity market changes. Surging oil prices and trading excitement in the market continue to support the Russian currency. Moreover, the situation in the energy market is still complicated, analysts note.
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