Brent topped $ 72 a barrel for the first time since 2019 as it faced concerns about an overall COVID-19 vaccine release worldwide, such as OPEC + supply discipline and recovery in demand.
The Organization of the Petroleum Exporting Countries and its allies said they would abide by the supply restrictions agreed on Tuesday. A weekly distribution report on Thursday was released in the U.S. Crude inventory was lower than expected last week.
U.S. figures show an increase of 559,000 jobs in the past month. Following the report, U.S. The dollar weakened, making oil cheaper for holders of other currencies and lending to oil prices.
Brent crude rose 58 cents, or 0.8%, to $ 71.89 a barrel. After touching 72.17, it is the highest since May 2019.
U.S. West Texas median crude was up 81 cents, or 1.2%, at $ 69.62. Session max. Was 69.76, the highest since October 2018.
This week the U.S. Oil prices rose after energy companies cut the number of oil and natural gas rigs operating, for the first time in six weeks, data from energy service provider Baker Hughes showed.
“After much Dilly-dallying, Brent seems to have found a new home for over $ 70,” said Stephen Brennan, an oil broker at PVM. “Summer and the reopening of the world economy are positive for oil demand in the second half of the year.”
Brent rose about 3% during the week, while U.S. Crude made almost 5% profit. This is the second week for both contracts.
This week’s oil increase is the culmination of negotiations between the United States and Iran over Tehran’s nuclear program, which has lowered expectations for a return to Iranian oil supplies.
“Energy markets are locked in Iran nuclear talks, which should be taken up next week,” said Edward Moya, OANDA’s senior market analyst.
“Fifth round of talks will heat up next week, and it should support oil prices as Tehran sticks with their red lines to revive the nuclear deal.”
Meanwhile, the U.S. Crude production is likely to grow slower than expected because shale manufacturers have only added a small number of extra ricks to increase production, instead opting for higher prices and profits.
As the growing demand in countries such as the United States and the speed of vaccinations have pushed up oil, slower vaccine rolls and more epidemics such as Brazil and India are hitting demand in more developed oil markets.
“Every country in the world is not yet in full recovery mode, but currently no hiccups have been able to reverse the positive momentum caused by strong summer demand,” said Louise Dixon, oil market analyst at Rystad Energy.