Oil Extends Gains Thanks to OPEC+ Plan And Demand Expectations

Oil prices rose after OPEC and its allies agreed to commit to a cautious return to oil supplies to the market in June and July, with expectations of a strong recovery in demand in the United States and China, the world’s largest oil consumers.

US West Texas Intermediate crude rose 18 cents, or 0.27%, to about 68 dollars during the session, extending gains after a 2.1% increase the day after the holiday in the United States was on Monday.

Prices are at their highest level since October 2018.

Brent crude futures also rose 22 cents, or 0.31%, to more than $70 a barrel, adding to a 1.3 percent rise overnight, when it hit its highest level since March 8.

On Tuesday, OPEC+ agreed to keep the current plan to gradually ease restrictions on oil production until the end of July.

The statements of Saudi Energy Minister Prince Abdulaziz bin Salman after the meeting supported the market, as he said that he notes a strong

recovery of demand in the United States and China and that the pace of the vaccination campaign would only lead to more balance in the global oil market.