Daily Times

Global crude prices marked a fourth week of gains on Monday amid better forecasts for fuel demand along with tightness in supply as increased levels of anti-Covid vaccinations resulted in the easing of travel restrictions.

At 12:30pm GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained 0.80 percent to reach $73.27 a barrel. Likewise, the US West Texas Intermediate (WTI) reached $71.49, up 0.82 percent.

The price for Opec Basket was recorded at $70.90 a barrel with a 1.56 percent increase, Arab Light was available at $72.62 a barrel with 0.69 percent increase, while the price of Russian Sokol reached $73.45 after gaining 0.67 percent.

According to experts, North America and most of Europe are returning to motor vehicle traffic comparable to pre-pandemic levels, while coronavirus-related lockdowns and other restrictions are currently being eased or lifted, sending more planes into the air, thus boosting demand for fuel. They said that in the short-term, the oil market may be volatile with frequent pull-backs as crude prices are beginning to struggle as demand in Europe and India faces headwinds. The major trend is, however, still intact and deep pullbacks would provide opportunities for buying the dips, they added.

They said that oil prices are finding support after the International Energy Agency (IEA) on Friday predicted that global oil demand will recover to pre-pandemic levels by late 2022.

Last week, the International Energy Agency (IEA) called on the Organisation of the Petroleum Exporting Countries (OPEC) and its allies “to open the taps to keep the world oil markets adequately supplied.” The OPEC+ group has been curbing output to bolster global prices for oil after the pandemic dragged down demand in 2020. Last month, members of the oil alliance led by Russia and Saudi Arabia maintained strong compliance with agreed targets.