Oil Advances Towards $72, Supported by Demand Expectations

Oil rose towards $72 a barrel on Friday, June 4, to trade near its highest level in two years, as the OPEC+ plan on supplies and recovering demand overshadowed concerns about the irregular activity of vaccinations against Covid-19 globally.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies said they were going ahead with the agreed supply restrictions. Thursday’s weekly supply report showed US crude inventories fell more than expected last week.

Brent crude rose 33 cents, or 0.5%, to $71.64 a barrel. Yesterday, it reached its highest level during the session at $ 71.99, its highest level since May 2019. US West Texas Intermediate crude rose 22 cents, or 0.3%, to $ 69.03.

On a weekly basis, Brent is set to increase more than 2.8% and WTI is headed for a 4% increase.