Daily Times

Global prices for crude oil rallied on Wednesday as a rapid rebound from the Covid-19 pandemic across the world underpins increasing fuel consumption.

At 11:40am GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained 0.68 percent to reach $75.32 a barrel. Similarly, the US West Texas Intermediate (WTI) reached $73.47, up 0.85 percent.

The price for Opec Basket was recorded at $71.56 a barrel with 1.01 percent decrease, Arab Light was available at $74.59 a barrel with 0.62 percent increase, while the price of Russian Sokol reached $75.24 after gaining 0.57 percent.

The American Petroleum Institute (API) has reported a draw in crude oil inventories of 7.199-million barrels for the week ending June 18. Analysts had predicted a much smaller draw of 3.942 million barrels for the week.

In the previous week, the API reported a draw in oil inventories of 8.537 million barrels after analysts had predicted a draw of 3.290 million barrels. Crude oil inventories have fallen by more than 29 million barrels since the start of 2021, according to API data, but are still up 27 million barrels since January 2020.

On the other hand, the Organisation of the Petroleum Exporting Countries (OPEC) and its allies will reportedly discuss increasing oil output to meet rising global demand during their upcoming meeting, scheduled for next week. Russia is expected to propose that OPEC+ should take steps to reduce a global supply deficit. Other members of the group are reportedly discussing a potential supply hike in August.

Global crude prices surged above $75 a barrel for the first time in more than two years, as major economies are gradually resuming after a year of pandemic-related freeze. The international benchmark Brent has rallied more than 40% this year. The OPEC and its allies are reportedly in the process of bringing some two million barrels per day back to the market. However, more softening of production curbs is necessary amid rising prices.