Oil prices continue to rise thanks to signs of a strong recovery in fuel demand


Oil prices rose for a second session on Wednesday, thanks to indications of strong demand for fuel in Western economies, while the prospects for the return of Iranian supplies dissipated; The US Secretary of State said it was unlikely that sanctions against Tehran would be lifted.
Brent crude futures rose 32 cents, or 0.4 percent, to $ 72.54 a barrel, after earlier touching $ 72.83, the highest level since May 20, 2019. Brent rose 1 percent on Tuesday.
US West Texas Intermediate crude futures rose 31 cents, or 0.4 percent, to $70.36 a barrel, and had recorded $70.62, the highest level since October 17, 2018. On Tuesday, crude prices rose 1.2 percent.
“It appears that the improved demand outlook is boosting crude oil prices, as the successful introduction of the vaccine and the summer travel season in the United States and Europe continue to support fuel demand,” said Margaret Yang, an expert at Singapore-based DailyFix.
ANZ Research analysts said in a note: Recent traffic data indicates that travelers are moving on the roads as restrictions ease, pointing to data by TomTom showing that traffic congestion in 15 European cities is at its highest levels since the start of the Corona virus pandemic.
On Tuesday, the US Energy Information Administration expected fuel consumption growth this year in the United States, the world’s largest oil consumer, to reach 1.49 million barrels per day, up from a previous forecast of 1.39 million barrels per day.
In another positive sign, data for the sector shows that US crude stocks fell last week, in line with analyst expectations according to a Reuters poll.
Two market sources, citing data, said that the American Petroleum Institute reported that crude stocks fell by 2.1 million barrels in the week ending June 4.
Inventories data from the US Energy Information Administration is due on Wednesday at 14:30 GMT.


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