Oil prices soar on demand prospects in US and China
Oil prices surged today after OPEC and its allies stuck to their plan to cautiously bring back oil supply to the markets in June and July.
A robust recovery in expected in the US and China, the world’s two biggest oil consumers, after prices rose their highest since October 2018.
US West Texas Intermediate (WTI) crude futures rose 0.27 per cent to $67.90, extending a 2.1 per cent gain following the Memorial Day holiday in the US.
Brent crude futures climbed 0.31 per cent to $70.47 a barrel, after a 1.3 per cent surge overnight.
OPEC and its allies, together called OPEC+, yesterday agreed to keep their plan to gradually ease supply curbs throughout July.
Saudi Energy Minister Prince Abdulaziz bin Salman said that that the pace of vaccine rollouts “can only lead to further rebalancing of the global oil market”.
“The market appears focused on the more constructive outlook for later this year, with OPEC+ of the view that the market will see significant stock drawdowns between September and the end of the year,” ING Economics analysts said in a note.