Oil prices rise on weakening fears for demand

Global oil prices climbed on June 21 morning amid declining investor fears about crude demand during the pandemic, according to trading data, Report informs referring to Prime agency.

As of 8:54 (GMT+4), the price of August futures for the North Sea Brent oil blend grew by 0.46 percent to $73.85 per barrel. The cost of August futures for WTI oil increased by 0.56 percent, to $71.69, while the price of July futures grew 0.38 percent, to $71.91.

Traders continue to monitor the global coronavirus situation. Vaccination rates are increasing in many countries around the world, while the incidence is declining. Against this background, some quarantine restrictions are being lifted, which has a positive effect on the level of oil demand.

Bidders are also following talks on an Iranian nuclear deal, with the sixth round of talks on the complete restoration of the Joint Comprehensive Plan of Action (JCPOA) concluded on June 20.

“The market is quickly coming around to the view that, with demand rebounding so strongly over the northern hemisphere summer, additional supply will be required,” said Daniel Hynes, senior commodities strategist at Australia and New Zealand Banking Group Ltd. “With OPEC remaining cautious and little chance of Iranian oil hitting the market soon, the market looks likely to remain fairly tight in the next few months.”