Oil prices continue to rise on Monday after a steady growth last week.
So, according to a poll by CBS News, Americans have become more comfortable with meeting with friends, returning to work, and attending public events. Meanwhile, the average daily air traffic in the United States for the first time since the pandemic onset exceeded 2 million passengers.
The International Energy Agency (IEA) predicts that global oil demand will return to pre-pandemic levels by the end of 2022. In 2021, as expected in the IEA, demand increased by 5.4 million barrels per day to 96.4 million barrels per day, and in 2022 it will go up by 3.1 million barrels per day.
The cost of Brent oil August futures on the London ICE Futures Exchange as of 9:20 am (UTC +4) on Monday was $73.01 per barrel, which is $0.32 (0.44%) higher than the price at the close of the previous session. During the Friday trading, these contracts rose by $0.17 (0.2%) to $72.69 per barrel, which was the highest since April 2019.
The price of WTI crude oil futures for July in e-trading on the New York Mercantile Exchange (NYMEX) was by this time $71.23 per barrel, which was $0.32 (0.45%) higher than the final value of the previous session. By the session's end on Friday, the price of these contracts increased by $0.62 (0.9%) to $ 70.91 per barrel, the highest since October 2018.
Over the past week, Brent rose in price by 1.1%, WTI - by 1.9%. The oil market has reacted to a lot of positive news in the past week, especially from the US and Europe, which open after the pandemic, said Vanda Insights founder Vandana Hari. Prices may continue to rally in the coming weeks, but the pace of the rally will be slower as the market needs fresh momentum, Hari said.