Crude oil prices continued over one-year highs as easing restrictions in various countries ushered in travelers and bolstered expectations of a rapid surge in the demand for fuel.
Inconclusive and slow pace of dialogue with Iran on the nuclear deal, buoyant manufacturing data from the U.S., Europe etc. as well as the decision of OPEC+ to stick to a disciplined and gradual easing of supply curbs lent energy to the oil prices as they remain firm at period highs.
Brent crude for August settlement rose to a high of $71.98 in early trade, after rising 0.13 percent from previous close. Likewise, West Texas Intermediate crude for July settlement rose to a high of $69.40 after gaining 0.09 percent from previous close.
As per data released by the American Petroleum Institute, U.S. crude oil stocks fell by 5.36 million barrels in the week ended May 28th compared to a drop of 0.439 million in the previous week, and much higher than the market expectations of a 2.114 million barrels drop.
Markets await the U.S. government data on crude oil inventories for the same week later in the day and a market assessment of likely inventory deficits is bound to retain the price of crude at current high levels. Despite the easing of supply curbs and the concerns on fossil fuels and carbon emissions, the resurgence of domestic and international travelers, after months of lockdowns and restrictions, is expected to keep the world’s appetite for oil unquenched and feed the bullish momentum for the black liquid at least in the medium term.
The material has been provided by InstaForex Company – www.instaforex.com