Oil prices continued to rise today, Thursday, June 9, supported by strong demand in the United States, the largest consumer in the world, while demand in China is expected to recover with the easing of restrictions to combat the Corona virus in major cities.
Brent crude futures for August delivery rose 50 cents, or 0.4%, to $124.08 a barrel by 01:53 GMT, while US West Texas Intermediate crude for July delivery rose 38 cents, or 0.3%, to $122.49 a barrel.
The two benchmarks closed yesterday, Wednesday, at their highest level since the eighth of March, recording levels seen in 2008.
And data from the US Energy Information Administration showed on Wednesday that the United States recorded a record decline in strategic crude reserves, while commercial stocks rose last week.
US gasoline stocks fell unexpectedly, indicating the robustness of demand for motor fuels during its summer peak despite the sharp rise in prices.
Investors are awaiting trade data for May in China, due later today, in search of indications of demand in the world’s second largest oil consumer.
“China’s reopening continues to support demand optimism,” CMC Markets analyst Tina Ting said in a note.
UAE Energy Minister Suhail Al Mazrouei said yesterday, Wednesday, that the efforts of oil producers in the OPEC + group to increase production are “not encouraging”, noting that the group’s production is currently less than its target by regarding 2.6 million barrels per day.
The group agreed last week to speed up production increases to curb rampant fuel prices and slow inflation. But the move would leave producers with very little spare capacity, with almost no possibility of making up for any major supply disruptions.
Source: cnbcarabia