Rising Oil Prices, What Is The Cause? - Kakiforex.com - Financial Market Media No. 1 in the World Rising Oil Prices, What Is The Cause? Rising Oil Prices, What Is The Cause?

June 1, 2021

Rising Oil Prices, What Is The Cause?

 Market confidence in rising global oil demand has driven crude oil trading higher on Tuesday.

Brent crude traded, hitting a nearly three -month high in the Asian session with trading consolidating above $ 70 a barrel.

US WTI, meanwhile, traded around $ 67.60 a barrel, after up nearly 2% since the Asian session began.

According to analysts, despite concerns about tighter COVID-19-related restrictions across Asia, the market appears to be more focused on positive demand expectations from the US and Europe.

The outlook for fuel demand is improving as more economic data from the United States, Europe and China continue to show a strong recovery from the impact of the coronavirus pandemic.

Meanwhile, the market is now eyeing a meeting of the Organization of the Petroleum Exporting Countries (OPEC), and its allies including Russia, OPEC+ which will discuss the next tightening in crude oil production.

Before the meeting began, the OPEC Joint Technical Committee gave a positive forecast on oil supply, where it is expected to drop by at least 2 million barrels a day from September to December supported by strong demand.