Oil prices rise in anticipation of increased demand as pandemic weakens

Global oil prices continued to rise on Tuesday morning in anticipation of increased demand as the COVID-19 pandemic declines, Report informs, citing Prime.

As of 9:05 am (Baku time, GMT +4) the price of July futures for the North Sea Brent oil mixture grew by 0.28% to $68.65, August futures increased by 0.16%, to $68.48 per barrel. July futures of WTI rose in price by 0.11%, up to $66.12 per barrel.

According to media reports, the number of new COVID cases in the United States rose by just 0.5% over the week, the lowest since March 2020. More than 61% of the country's population has been vaccinated, which contributes to an increase in citizens’ mobility and energy consumption. Against this backdrop, oil traders hope for a further recovery in demand.

This optimism is somewhat constrained by the prospects of oil supplies from Iran in the event of the nuclear deal’s renewal. However, according to analysts at Goldman Sachs Group Inc, quoted by Bloomberg, the market is likely to be able to "swallow" the extra barrels if demand rises as vaccinations continue.