Oil prices rise on optimism of quick recovery in global demand

Oil pumpjacks are seen in Lagunillas, Venezuela May 24, 2018. (Reuters)

SULAIMANI (ESTA) — Oil prices rose on Tuesday as investors remained bullish about a quick recovery in global oil demand and as concerns eased over an early return of Iranian crude.

Brent crude futures climbed 22 cents to $75.12 a barrel by 0656 GMT. It rose as high as $75.23 per barrel, the strongest since April 25, 2019, earlier in the session.

U.S. West Texas Intermediate (WTI) for July crude was at $73.70 a barrel, up 4 cents.

“The market sentiment stays strong with improved outlook for global demand,” Reuters quoted Satoru Yoshida, a commodity analyst with Rakuten Securities, as saying.

He added a rally in Asian stock markets is also helping boost risk appetite among investors.

Global shares extended their recovery on Tuesday, with Asian markets bouncing from four-weeks lows as investor focus on economic partly offset worries about the U.S. Federal Reserve raising rates sooner than expected.

BofA Global Research raised its Brent crude price forecasts for this year and next, saying that tighter oil supply and recovering demand could push oil briefly to $100 per barrel in 2022, according to Reuters.

“The oil prices are expected to hold a firm tone amid expectations that fuel demand will pick up quickly along with economic recovery in Europe and the United States,” Toshitaka Tazawa, analyst at commodities broker Fujitomi Co told Reuters.

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