Brent Crude Rises Towards $71 Amid Signs of Increased Demand in America

Oil rose towards $71, as signs of increased fuel demand in the United States offset concerns about travel restrictions in Asia due to the spread of the Delta strain.

Sector data showed a decline in US crude and gasoline stocks last week, while the US Energy Information Administration said that US job growth and increased transfers raised gasoline consumption since the beginning of this year.

Brent crude rose 22 cents, equivalent to 0.3% , to $ 70.85 a barrel by 0810 GMT, following a 2.3% rise yesterday.

West Texas Intermediate crude gained 21 cents, or 0.3% , to $68.50, after a 2.7% jump yesterday.

“It appears that (prices) lacked the momentum to rise significantly as delta dynasty concerns continue to pressure,” said Jeffrey Haley, an analyst at brokerage Oanda.

The Brent price has risen 37% since the beginning of this year, supported by supply cuts led by OPEC, but oil suffered its largest weekly loss in months last week as a result of fears of imposing travel restrictions to curb Corona virus infections, which will derail the demand recovery.