Report

rss

Iraq News

Kurdistan

Economy

World

All News

Oil bulls take charge as demand outlook improves, Brent up a fifth day

Category: Economy

Date: 2021-06-16T05:54:09+0000
Oil bulls take charge as demand outlook improves, Brent up a fifth day

Shafaq News/ Oil prices rose on Wednesday, with Brent gaining for a fifth consecutive session, as falling stockpiles and a recovery in demand encouraged investors.

Brent crude was up 64 cents, or 0.86%, at $74.63 a barrel by 0518 GMT, having risen 1.6% on Tuesday.

U.S. crude gained 57 cents, or 0.80%, to $72.89 a barrel, after rising 1.7% in the previous session.

“Even non-energy traders are placing bets that oil prices will continue to rise,” said Edward Moya, senior market analyst at OANDA.

“Everyone is turning overly bullish with crude prices. The crude demand outlook is very robust as recoveries across the US, Europe and Asia, will have demand return to pre-COVID levels in the second half of next year,” Moya said.

U.S. oil inventories dropped by 8.5 million barrels in the week ended June 11, according to two market sources, citing American Petroleum Institute figures on Tuesday.

Crude stocks were expected to have fallen for a fourth week in a row, dropping by about 3.3 million barrels last week, according to analysts polled by Reuters. Official government data is due out Wednesday.

Executives from major oil traders said on Tuesday they expected prices to remain above $70 a barrel and demand to return to pre-pandemic levels in the second half of 2022.

Vitol Chief Executive Russell Hardy said oil is likely to trade in a range between $70 and $80 a barrel for the rest of this year on the expectation that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) will retain output restraints.

Even the return of Iranian exports if the United States rejoins a nuclear agreement and lifts sanctions on Tehran is unlikely to change the bullish picture, he said.

Source: Reuters, Oil prices updated by Shafaq New Agency

related

Oil Barrels with triple figure price tags in sight

Date: 2022-01-18 11:11:30
Oil Barrels with triple figure price tags in sight

Iraq's oil minister expresses optimism following talks with KRG over oil

Date: 2022-04-11 16:48:32
Iraq's oil minister expresses optimism following talks with KRG over oil

Oil prices may drop soon due to COVID-19 second wave

Date: 2020-11-02 19:46:26
Oil prices may drop soon due to COVID-19 second wave

OPEC Reference basket hits 73$

Date: 2021-07-01 15:16:59
OPEC Reference basket hits 73$

Oil up nearly 5% on possible extension of Saudi output cuts

Date: 2021-03-04 16:58:53
Oil up nearly 5% on possible extension of Saudi output cuts

US: Iraq among the country's top five exporters of crude oil

Date: 2020-09-06 10:02:41
US: Iraq among the country's top five exporters of crude oil

Oil prices rise on early signs of pick up in fuel demand

Date: 2020-04-30 12:36:52
Oil prices rise on early signs of pick up in fuel demand

OPEC to stick to oil production deal in October, Iraq oil minister says

Date: 2021-09-19 15:17:29
OPEC to stick to oil production deal in October, Iraq oil minister says