Oil fell during yesterday’s trading after hitting a two-year peak above $72, due to pressure caused by the possibility of increased exports from Iran, but the recovery in demand and supply restrictions from OPEC + provided some support.
Demand increases in the United States and Europe with the easing of restrictions related to Covid-19, and India is easing isolation measures in another step that may boost fuel consumption.
Brent crude fell 62 cents, or 0.9%, to $71.27, after hitting $72.27 earlier, the highest level since May 2019.
US West Texas Intermediate crude touched $70 for the first time since October 2018, but reversed the trend to trade down 66 cents, or 0.8%, to $69.07.
“With some improvement in pandemic conditions in India and recovery in the United States and China while Europe remains on track, there should be an appetite for crude buying with each drop,” said Jeffrey Haley, an analyst at brokerage Oanda.
Crude has risen over the past two weeks, and Brent has increased 37% since the beginning of the year thanks to supply restrictions imposed by OPEC and its allies, and demand partially recovering from the collapse caused by the pandemic.
Iran and world powers will start a fifth round of talks on June 10 in Vienna that may include the United States lifting economic sanctions on Iranian oil exports.