SULAIMANI (ESTA) — Oil prices rose on Thursday on expectations for a surge in fuel demand, particularly in the United States, Europe and China.
Brent crude futures climbed 42 cents to $71.76 a barrel by 0635 GMT, the highest since September 2019. U.S. West Texas Intermediate (WTI) crude futures rose 35 cents to $69.18 per barrel.
The consensus among market forecasters, including the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, is that oil demand will exceed supply in the second half of 2021, according to Reuters.
OPEC+ data shows that by the end of the year oil demand will be 99.8 million barrels per day (bpd) versus supply of 97.5 million bpd.
This rebalancing will be led by resurgent demand in the United States, the world’s biggest oil user, from vehicle consumption this summer, along with rising fuel needs in China, the world’s second biggest oil consumer, and in the UK as it exits its coronavirus lockdowns.
“The U.S. driving season is a period that sees higher‑than‑normal fuel consumption. UK traffic is now sitting above pre‑pandemic levels,” Reuters cited CBA commodities analyst Vivek Dhar as saying.
“We continue to see the oil demand recovery led by the U.S., Europe and China,” Dhar said.
