Oil futures climbed on Friday as optimistic expectations for crude demand help set prices up for a weekly gain of around 5.
Not every country in the world is on a full recovery mode yet, but at the moment no hiccup seems able to reverse the bullish momentum ushered in by strong summer demand, said Louise Dickson, oil markets analyst at Rystad Energy, in daily commentary. Its not only summer demand, its also progress in vaccination campaigns and major pushes by governments to convince people to inoculate.
West Texas Intermediate crude for July delivery rose 76 cents, or 1.1, to 69.57 a barrel on the New York Mercantile Exchange. August Brent crude, the global benchmark, was up 66 cents, or 0.9, at 71.97 a barrel on ICE Futures Europe after trading as high as 72.17.
WTI was headed for a 4.9 weekly rise, while Brent was up 4.7.
Oil prices are finding tailwind from the clear signs that demand is making a solid recovery, wrote analysts at Commerzbank, in a note.
The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC, and the International Energy Agency are looking for oil demand to recover further. The IEA, which now sees demand back at precrisis levels in a year, had previously not expected that to happen until 2023, the analysts noted.
If OPEC does not step up its supply any further after July, the oil market risks tightening noticeably in the second half of the year, the Commerzbank analysts wrote.
OPEC agreed earlier this…