Oil Rises With Improved Expectations of Demand And Tight Supplies

Oil prices rose today, continuing the gains that lasted over three weeks, thanks to improved expectations for fuel demand, as Covid-19 vaccinations contributed to lifting travel restrictions, as well as tight supplies.

Brent crude rose 51 cents, or 0.7%, to $73.20 a barrel, the highest level since May 2019.

West Texas Intermediate crude rose 47 cents, or 0.7%, to $71.38, its highest since October 2018.

Car traffic returned to pre-pandemic levels in North America and many countries in Europe, and flights increased with the easing of restrictions to combat the Coronavirus, which led to a rise in both crudes for three weeks.

The International Energy Agency said on Friday that the Organization of the Petroleum Exporting Countries and its allies in the OPEC+ group should increase production to meet recovering demand.

OPEC+ is limiting production to support prices after the Covid-19 pandemic reduced demand in 2020 and confirmed a strong commitment to the production target agreed in May.

US investment bank Goldman Sachs expected the price of Brent crude to reach $80 a barrel this summer, as the distribution of vaccines against Covid-19 boosts economic activities around the world.