Oil’s recovery from the impact of the pandemic has been driven by Asian demand, as well as fiscal and monetary stimulus. Data Monday showed most key manufacturing economies gained ground last month, with China staying in expansionary territory. Positive sentiment in equity markets also aided crude. WTI Crude is $62.30; Brent is $65.27
While crude futures declined on Friday, global benchmark Brent has rallied to its best-ever start to a year. Next week, OPEC and its allies will meet to decide on output levels, with market gauges indicating strength. WTI is $62.28; Brent is 65.87
Futures in New York rose to near $63 a barrel. Inventories of U.S. oil have fallen by 40 million barrels over the last three weeks, with cold-weather demand for heating fuels offsetting a rise in gasoline and crude stockpiles. The futures curve is continuing to indicate tightness. WTI is $63.61; Brent is $67.16
There’s been a spate of optimism across the oil market in recent weeks, with key players talking up the prospect of higher prices later in the year. Pent-up demand as the global economy recovers has even got some traders talking about the prospect of returning to $100 over the next year or two. WTI Crude is $62.04; Brent is $65.90
The global oil market has been under-supplied by 2.8 million barrels a day so far this year, Morgan Stanley said, boosting its Brent forecast for the third quarter to $70 a barrel. Goldman has raised its estimate for the same period to $75, while Socar said $100 was possible in the next 18 to 24 months. WTI Crude is $62.11; Brent is $65.66
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