Oil prices closed the session higher on Monday, January 25, with Brent gaining 1.24% to $55.66/bbl, while WTI rose 1.4% to $52.74/bbl.
Western media reports that the US is considering a military base in Saudi Arabia in case of a conflict with Iran apparently stoked bullish sentiment. However, the speculative enthusiasm of the bulls quickly fizzled out, most likely due to the fears voiced by German Chancellor Angela Merkel at the online conference of the Davos Economic Forum that the coronavirus pandemic is out of control.
This morning, oil prices continue to trend lower amid uncertainty as Brent is down 0.45% and WTI is off 0.38%. Today we expect to see Brent trading again in the $54.8-56.0/bbl range.