Oil prices rose on Tuesday in anticipation of rising demand for fuel on the third day, especially in the United States and Europe and China, while large producers maintain supply discipline.
Brent crude futures rose 40 cents or 0.6% to $ 71.75 a barrel at 06.35 GMT, after earlier hitting a September 2019 high. The international benchmark gained 1.6% on Wednesday.
US West Texas crude rose 34 cents in the future, or 0.5%, to $ 69.17 a barrel. Prices previously rose to $ 69.40, most since October 2018, after gaining 1.5% in the previous session.
The consensus among market advertisers, including the Organization of Petroleum Exporters and its allies, known as OPEC +, is that oil demand will exceed supply in the second half of 2021, which has driven a recent surge in prices.
OPEC + data show that by the end of the year the demand for oil will be 99.8 million barrels per day (bpd) and the supply will be 97.5 million bpd.
This readjustment will restore demand generated by vehicle consumption in the U.S., the world’s largest oil user, this summer, along with fuel needs coming out of its COVID in China (the world’s second-largest oil consumer) and the UK. 19 blocking.
“The US driving season is a time when fuel consumption is higher than normal. UK traffic is above previous pandemic levels,” Vivek Dhar CBA Resource Analyst said in a statement. “We continue to see a recovery in demand for oil driven by the US, Europe and China.”
U.S. crude oil inventories fell more than 5 million barrels last week, according to two market sources, citing data from the American Petroleum Institute on Wednesday.
OPEC + agreed on Tuesday to continue with plans to ease July.
The OPEC + meeting lasted 20 minutes, the fastest in the group’s history, suggested full compliance among members, and believes the request will be restored when the COVID-19 Pandemic shows signs of decline.
The slowdown in talks between the US and Iran over the latter’s nuclear program has reduced expectations of a return of Iranian oil supplies to the market this year.
The European Union envoy, who is coordinating the talks, said he believed an agreement would be reached in the next round of talks, which began next week, although other diplomats had warned of the difficulties.
“The talks that are taking place in Vienna in 2015 to revive the 2015 Nuclear Agreement would remove US sanctions against Iran, which now seems unlikely to be a solution,” CBA’s Dhar said.
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