Oil prices rose on Monday, extending three weeks of gains that were supported by an improving outlook for fuel demand as increased COVID-19 vaccinations help lift travel restrictions, as well as the contraction of supply.
Brent crude rose 51 cents, or 0.7%, to $ 73.20 a barrel at 0644 GMT, the highest since May 2019. US West Texas Intermediate gained 47 cents, or 0.7%, at $ 71.38 per barrel, the highest since October 2018.
Motor vehicle traffic is returning to pre-pandemic levels in North America and much of Europe, and more planes are in the air as coronavirus lockdowns and other restrictions are relaxed, resulting in a three-week increase for oil references.
“In the short term, the oil market can be volatile with frequent setbacks as crude prices start to struggle as demand in Europe and India faces headwinds,” said Avtar Sandu, Senior Director commodities at Phillip Futures in Singapore.
“The major trend is however still intact and deep pullbacks would provide buying opportunities for the lows,” he said.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC +, must increase production to meet the recovery in demand, the International Energy Agency (IEA) said on Friday. in its monthly report. Read more
The OPEC + group has restricted production to support prices after the pandemic wiped out demand in 2020, maintaining strong compliance with targets agreed in May. Read more
“OPEC + must turn on the taps to ensure an adequate supply of world oil markets,” said the IEA.
Goldman Sachs said last week that it expects Brent to hit $ 80 a barrel this summer as the vaccine rollout spurs economic activity around the world. Read more
Operating U.S. oil rigs rose six to 365, the highest since April 2020, energy services firm Baker Hughes Co said in its weekly report.
It was the largest weekly increase in oil rigs in a month, as drilling companies sought to take advantage of rising demand.
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