Oil prices growing amid increasing demand

Global oil prices are growing on June 24 morning as shrinking stockpiles in the US and China add to bullish sentiment around the global demand recovery, Report informs referring to Bloomberg.

As of 8:53 (GMT+4), the price of August futures for the North Sea Brent oil blend was growing by 0.09 percent, to $75.26 per barrel, while the price of August futures for WTI oil increased by 0.12 percent, to $73.17 per barrel.

The recovery has accelerated as vaccinations are rolled out worldwide, boosting fuel consumption and helping to drain stockpiles that were built up during the height of the pandemic. US crude stockpiles fell by 7.6 million barrels last week, while inventories at the storage hub of Cushing dropped for a second week, according to data from the Energy Information Administration on June 23.

The OPEC+ alliance is scheduled to meet toward the end of next week to discuss its production policy for August and some nations are considering backing an output increase.

“A tightening market seems to be more than enough to offset a hike in OPEC+ production,” Margaret Yang, a strategist at DailyFX in Singapore. Any output increase from the alliance “should be very slow and gradual,” she added.