Crude oil futures climbed higher on Monday as inconclusive negotiations with Iran on the nuclear deal issue and reports forecasting a possible hurricane in the Gulf of Mexico eased concerns about any excess supply in the market.
A weak dollar, and expectations of a surge in energy demand amid easing travel restrictions in the U.S. and Europe supported oil’s uptick. Recent upbeat data like strong manufacturing and services sector reports from the U.S. and some major European economies helped as well.
West Texas Intermediate Crude oil futures for July ended up by $2.47 or about 3.9% at $66.05 a barrel.
Brent crude futures were up $1.97 or nearly 3% at $68.32 a barrel a little while ago.
According to Goldman Sachs, oil prices are likely to hit $80 a barrel this year even if large volumes of Iranian crude return to the market, as energy demand is set to rise thanks to acceleration in vaccination and reopening of businesses in the U.S. and Europe.
The material has been provided by InstaForex Company – www.instaforex.com