Oil prices reach multi-year high on demand hopes


Mumbai, Jun 14 (IANS): Crude oil prices surged to multi-year highs on Monday on hopes of rising demand, along with estimates of tightening supplies.

The August contract of Brent crude oil the Intercontinental Exchange (ICE) surged 0.92 per cent to $73.36 per barrel.

Similarly, the July contract of WTI crude on the NYMEX was at $71.56, higher by 0.92 per cent from its previous close.

Increase in vaccine coverage across the globe has raise hopes of normalising economic activities and eventual rise in oil demand.

The International Energy Agency (IEA), in its Oil Market Report for June 2021, said that global oil demand is set to return to pre-pandemic levels by the end of 2022, rising 5.4 mb/d (millions of barrels per day) in 2021 and a further 3.1 mb/d next year.

It also noted that the Organisation of the Petroleum Exporting Countries (OPEC) and its allies, would have to raise its output to meet the reviving demand.

 

  

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Comment on this article

  • Sameer, Riyadh

    Mon, Jun 14 2021

    Brace up for the roller coaster ride.....Does not look like OPEC will increase the output. In such a scenario prices are bound to reach at least 82 to 85$ per barrel. OPEC will increase the output somewhere in Sept if full scale travel begins and countries open their borders. Indian borders not opening before July 15th for sure. Thus petrol prices in India may reach around Rs. 120-125 per litre.

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