The surge in oil prices can no longer be stopped - Kakiforex | Forex markets for the smart money. The surge in oil prices can no longer be stopped The surge in oil prices can no longer be stopped

June 3, 2021

The surge in oil prices can no longer be stopped

 Black commodities continued to rise higher amid market optimism over the recovery of growing global fuel demand.


Brent crude traded up for the third day in a row, trading around its highest level since May 2019, at $ 71.90 a barrel.


Meanwhile, US WTI traded stronger around $ 69.30 a barrel, the highest level ever seen since October 2018.


Sentiment in the oil market is increasingly positive, as more analysts expect demand to rise. Most recently, OPEC+ said that oil demand will exceed supply in the second half of 2021.



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


In addition, US crude oil supply data released by the American Petroleum Institute (API) on Wednesday, also supported further price strengthening.


U.S. crude oil inventories recorded a significant drop of 5.4 million barrels last week, a drop larger than the previous week’s reduction of 439,000 barrels.


The market is now awaiting official data from the U.S. Energy Information Administration (EIA) to confirm the large reduction recorded in crude oil inventories last week.