Oil prices rose on Monday, May 24, 2021, kicking off the week on a positive note and continuing the steady recovery of oil prices as major economies across Europe reopen and cross-border travel prospects improve.
Brent, the international standard, was 0.66% higher at $66.88 per barrel, while West Texas Intermediate (WTI) was 0.68% higher at $64.01 per barrel.
The pandemic’s inflation rate has been kept under control by a vigorous vaccination campaign, which has supported oil prices by raising cross-border travel opportunities in European countries and enabling the reopening of public venues in some European destinations.
A senior market analyst for Asia Pacific at Oanda, Jeffrey Halley, said: “Brent crude is now near the middle of a wider $64.60 to $70 barrel range after last week’s price actions” and Brent could “gradually edge higher” this week.
On the supply side, a potential return of Iranian output could alter the dynamics of OPEC+, which plans to increase its production by 2 million barrels per day by July. The current supply dynamics will be discussed at the next OPEC conference, which is scheduled for the end of this month.
The surge in COVID-19 cases in India, which is the world’s third-largest consumer, may put the OPEC+ planned rise in jeopardy.
