"This week saw an avalanche of strong data and reassuring developments in the U.S., but that may have buried the rising global risk of more transmissible Covid variants,” said one energy analyst, “At six-week highs, crude was ripe for a breather.” WTI is $63.55; Brent is $67.20
There has been a chorus of bullish voices on the outlook for crude this week, including a prediction from Goldman Sachs Group Inc. that oil demand will post a record jump over the next six months as vaccination rates accelerate. OPEC+ also raised its estimates for growth this year, but the alliance cautioned a worsening virus situation in India, Japan and Brazil could derail the recovery. WTI is $65.04; Brent is $68.56
Crude prices have risen this year on a global recovery driven by China and the U.S., with positive signs also emerging from parts of Europe. Analysts are forecasting an unprecedented jump in demand over the next six months as vaccination rates rise, with benchmark Brent crude seen reaching $80 in the third quarter. But virus flare-ups in some regions and prospects for higher supply from OPEC+, including potentially Iran, are tempering optimism. WTI is $63.43; Brent is $66.85
According to delegates who attended the panel on Monday, the OPEC+ committee of technical experts forecast that oil consumption will rebound by 6 million barrels a day this year. Most of the fuel inventories glut built up during the pandemic will have cleared by the end of this quarter, they said. The recovery is being driven by a strong rebound in China and the U.S., while some positive signs are emerging in parts of Europe. WTI is $62.28; Brent is $65.99
Oil fell as India’s worsening Covid-19 crisis weighed on the near-term outlook for demand ahead of a key OPEC+ meeting later this week. Futures in New York slid 1.7% toward $61 a barrel, as signs of strain on India’s refiners are starting to emerge. The risk in India comes despite China and the U.S. recovering strongly from the pandemic and some positive signs emerging from Europe. WTI is $61.16; Brent is $65.00
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