For the first time since March 2021, oil prices rose to $70 per barrel following the re-openings of European and U.S. economies and expected rise in demands.
The British economy reopened on Monday, Europe is beginning to reopen cities and beaches, the number of COVID-19 cases in the United States has dropped and New York has lifted the mask requirement for vaccinated people.
On Tuesday, Brent crude was up 47 cents, or 0.7%, at $69.93 by 0825 GMT, and earlier topped $70 for the first time since March 15th. U.S. West Texas Intermediate (WTI) crude was up 45 cents, or 0.7%, at $66.72.
In 2021, Brent’s rally has been up to 35% with the latest $70 gain, supported by supply cuts by the Organisation of the Petroleum Exporting Countries and their allies (OPEC+).
The situation in the U.S. and European countries contrasts that of Asian countries
Singapore and Taiwan have reinstated lockdown measures, and India has seen a huge drop in fuel demand following strict restrictions imposed to curb the spread of the ‘Indian’ COVID-19 variant.
Commenting, Tamas Varga of broker PVM, said: “Economies are again switching a gear higher. The euphoria is reflected in the general belief that the economic revival will be soon coupled with oil demand recovery.”
Also commenting, an analyst at brokerage OANDA, Jeffrey Halley, said: “A rise through $70 should trigger more systematic buying and see it advance to $71.50 a barrel quite quickly.”
