Brent oil recorded its highest level since May 2019.. West Texas Intermediate is close to $70


Brent oil recorded its highest level since May 2019.. West Texas Intermediate is close to $70

Brent oil recorded its highest level since May 2019.. West Texas Intermediate is close to $70: Oil prices rose this week,
and the two oil standards reached their highest level in 2021, and in some sessions even recorded their highest level in two and three years. 

West Texas Intermediate Oil Futures (WTI) closed July delivery on the NYMEX Stock Exchange at the US $69.62 a barrel, the highest level this year.

Evest follows all developments in the world oil market and relays them directly to you. 

 In Friday’s trading, West Texas Intermediate crude oil prices rose by 1.18%, a barrel, and reached the highest level since October 2018.

Over the past week as a whole, it has risen by 4.98%.

Meanwhile, the price of Brent crude futures closed August delivery at the US $71.89 per barrel.

This is also the highest price for Brent oil in 2021. 

Brent oil prices rose by 0.81% on Friday, and there was a time when the price of Brent oil reached $72.17 per barrel,
the highest level since May 2019, and rose by 4.61% during the week.

The supply discipline of OPEC +, as well as the recovery of demand, countered concerns about the uneven spread of COVID-19 vaccines worldwide. 

The Organization of the Petroleum Exporting Countries (OPEC+) said on Tuesday that it would abide by agreed supply restrictions. 

Oil in a week 

This week, the price of Brent oil rose by more than 4% and the price of West Texas Intermediate crude rose by 5%.

This is the second week in a row that the prices of both oils have risen.

According to the Commerzbank report: “Oil prices are supported by clear signs of a strong recovery in demand.”

The pandemic remains complex in India, Brazil, and many other Asian countries, raising concerns about oil demand.

However, investors remained optimistic thanks to the rapid recovery in demand in the United States,
Europe, and China – economies with rapid vaccination rates and economies that maintain the momentum of recovery.

American stocks have fallen more than expected.. and employment data supported oil.

Thursday’s weekly supply report showed that U.S. crude stocks fell more than expected last week.

Oil prices extended gains after US figures showed non-farm jobs increased by 559,000 last month.

The United States dollar weakened after the report, making oil cheaper for other currency holders and supporting oil prices.

According to analysts, after a long time, Brent has been able to move past the $70 level, and it seems that it will hold on to it a lot over the coming period, especially since the summer and the reopening of the world economy will escalate oil demand in the second half of the year.

The support for oil prices also results from a slowdown in talks between the United States and Iran over a nuclear program that has undermined hopes for a return to Iranian oil supplies. 

The energy market expects the Iranian nuclear talks to begin next week.

The fifth round

The fifth round of talks will be raised next week and will keep oil prices supported because Tehran will remain on its red line to restore the nuclear agreement.

Meanwhile, crude oil production in the United States is likely to grow slower than expected, with shale oil producers adding only a limited number of additional diggers to boost production, opting to pursue higher prices and profits instead.

Oil prices rose after US energy companies cut the number of oil and gas rigs operating for the first time in six weeks this week, as data from Baker Hughes Energy showed.

While increased demand and faster vaccinations in countries like the United States have boosted oil, slowing vaccinations and rising infections in countries like Brazil and India have hurt demand in high-growth oil markets. 

Louise Dixon, oil market analyst, said: “Not every country in the world is in full recovery status, but at the moment there does not seem to be anything that can reverse the upward momentum caused by strong demand in the summer.”

Overall, crude oil prices have already risen by about 40% since the beginning of this year,
a big difference for many companies that have to deal with the costs of black gold products.

Oil crises and outlook for next week

Despite the significant progress made so far by oil prices, there are major oil crises.

With world economies recovering significantly from the Covid-19 crisis,
the second-largest oil consumer – India – is still suffering, amid a large and record outbreak of Covid-19 and black fungus cases. 

Travel and aviation movements have not returned to normal so far all over the world,
which reduces the demand for oil from this large sector, which was also one of the victims of the crisis. 

Analysts expect that oil will sustain the gains made last week, and prices will at least remain on a stable path,
but that is contingent on US-Iran talks which will resume again this week. 

Although the success of these talks will harm the markets, the market participants are now well aware
and aware that Iranian oil will not flood the markets once, but will gradually resume its exports,
which will not cause a large abundance in the market and a crisis between supply and demand. 

Market participants are also following the US inventories reports, which are performing well over the last period
and highlighting the decline in inventories, which implies an increase in demand.