Oil Prices Are Back Strong! Here's why - Kakiforex | Forex markets for the smart money. Oil Prices Are Back Strong! Here's why Oil Prices Are Back Strong! Here's why

April 14, 2021

Oil Prices Are Back Strong! Here's why

 Black commodity trade soared after data showed U.S. crude inventories fell more than expected and OPEC boosted its outlook on oil demand.


Brent crude futures rose 1.3% to $ 64.50 a barrel, while US WTI was up 1.4% at $ 61 a barrel.


Most recently, according to a monthly report released on Tuesday, OPEC has raised its consumption forecast for 2021 and predicts that the recovery in the crude oil market will continue in the coming months.



OPEC changed its forecast by expecting demand to increase by 5.95 million barrels a day this year, which is 70,000 barrels a day higher than its forecast last month.


On top of that, increased consumption is said to help supply to stay low, even as OPEC prepares to ease production cuts in May.


Meanwhile, the American Petroleum Institute (API) reported a decline in US crude oil supplies of 3.6 million barrels last week also supported the strengthening of prices.