Oil prices rose on Tuesday on hopes of rising demand as the coronavirus pandemic recedes.

Brent crude oil futures rose half a percent to $73.22 per barrel, while U.S. crude oil futures for July settlement were up half a percent at $71.22. Prices hit as high as $71.53 earlier in the day, marking the highest since October 2018.

As businesses reopen and demand for air and auto travel bounces back, investors are pinning hopes for increased summer demand in the U.S. and Europe.

Last Friday, the International Energy Agency said in a report that it expects global oil demand to return to pre-pandemic levels late next year.

World consumption will once again surpass 100 million barrels a day in the second half of 2022 as developed economies bring the virus under control, the agency said and called on the Organization of the Petroleum Exporting Countries to “open the taps to keep the world oil markets adequately supplied.”

A slowdown in talks between Iran and global powers in reviving a 2015 nuclear deal also supported oil prices.

An Iranian government spokesman said that the landmark accord was being delayed to resolve key sticking points.

The material has been provided by InstaForex Company – www.instaforex.com


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