Oil prices rose more than 1 percent on Monday, supported by the reopening of European economies and increased US demand, after they had declined earlier in the session due to a jump in Coronavirus infections in Asia and tepid data on factory production in China.
Brent crude ended the world record for the nearest trading session maturity, up 75 cents, or 1.1 percent, to settle at $ 69.46 a barrel.
U.S. West Texas Intermediate crude futures rose 90 cents, or 1.4 percent, to settle at $ 66.27 a barrel.
The British economy has reopened, giving 65 million people a measure of freedom after a four-month lockdown for COVID-19.
As vaccination rates accelerate, France and Spain have relaxed restrictions linked to the pandemic, while Portugal and the Netherlands have eased travel restrictions.
The good news of economic growth gave support to oil prices in the past few weeks, despite the fact that the pace of inflation raises concern among many investors about the rise in interest rates, which may harm consumer spending.
“The news is not all negative on the demand side because the United States saw a jump in air travel on Sunday to 1.8 million people, the highest total number since March 2020,” said Edward Moya, senior market analyst at ONA.
Moya noted that United Airlines announced that it would add 400 daily flights to European destinations until July.
The company said summer travel bookings jumped 214 percent from 2020 levels, and added that it plans to operate 80 percent of its flight schedule in the United States compared to July 2019.
Investors are still concerned about a mutated strain of coronavirus that was first detected in India. Indian states said on Sunday they would extend lockdowns to fight the pandemic that has killed more than 270,000 people in the world’s third largest oil consumer and importer.
On the other hand, gasoline prices at gas stations in the United States reached their highest level in seven years on Monday, as it will take some time for the supply chain in the largest fuel pipeline in the country to return to full capacity after a cyber attack that led to the network shutdown for six days. Last week I rushed to buy.
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