Oil Prices Rise For The Third Day Amid Expectations Of Higher Demand

Baghdad Oil prices rose for a third day, today, Thursday, amid expectations of an increase in fuel demand, especially in the United States, Europe and China, at the same time that major producers maintain supply discipline.

Brent crude futures rose 40 cents, or 0.56 percent, to $71.75 a barrel by 04:58 GMT, the highest level since September 2019. The international benchmark rose 1.6 percent on Wednesday.

West Texas Intermediate crude futures rose 39 cents, or 0.57%, to $69.22 a barrel. Prices earlier climbed as high as $69.33, the highest since October 2018, after rising 1.5% in the previous session.

The consensus among market expectations, including the Organization of the Petroleum Exporting Countries and its allies, better known as OPEC+, is that demand for oil will exceed supply in the second half of 2021, spurring the recent price rally.

OPEC+ data shows that by the end of the year oil demand will reach 99.8 million barrels per day versus supply of 97.5 million barrels per day.

This rebalancing will be done by increased demand in the United States, the world’s largest oil user, from vehicle consumption this summer, along with increased fuel needs in China, the world’s second largest consumer oil, and in the United Kingdom as it emerges from COVID -19.

The slowdown in talks between the United States and Iran over its nuclear program has dampened expectations that Iranian oil supplies will return to the market this year.

Source: National Iraqi News Agency