Oil exceeds 75 years for the first time in two years | Business and Economic News

Crude oil prices rose on Tuesday, with Brent earning $ 75 a barrel for the first time since April 2019 as investors held on to a rapid recovery in global oil demand and eased concerns about the return of crude Iran.

August Brent’s gross futures rose 29 cents or 0.4% per barrel to $ 75.19 by 06:58 GMT, matching earlier losses. It rose to $ 75.27 a barrel, the strongest session since April 25, 2019.

U.S. West Texas Intermediate (WTI) crude for July was $ 73.66 a barrel, up from the previous session. The August WTI rose 13 cents or 0.2 percent to a $ 73.25 barrel.

Brent won 1.9 percent and WTI 2.8 percent on Monday.

Both benchmarks have risen over the past four weeks in the face of the pace of global COVID-19 vaccines and the expected pace of collection on summer trips.

“Market sentiment remains strong with improved global demand forecasts,” said Satoru Yoshida, a commodity analyst at Rakuten Securities, adding that a rally on Asian stock markets is also helping to drive risk appetite among investors.

Global stocks extended their four-week lows on Tuesday as investors focused on opportunities for post-pandemic economic growth rather than worrying more than the dreaded stance taken by the US Federal Reserve at its political meeting last week.

Gross global benchmarks have garnered more than 40 percent this year with a strong pandemic rebound in the U.S., China and Europe as fuel consumption is on the rise, although in some parts of Asia the return of viruses will be an inappropriate recovery. Brent could reach $ 100 a barrel next year as demand for travel increases, with Bank of America Corp.

“Demand optimism is well established and the tightening of the market is very noticeable,” said Vandana Harik, founder of Vanda Insights. “If there is a break in this rally, it will probably come from supply.”

Investors are looking at weekly U.S. inventory data because crude oil depots have fallen for four weeks, Toshitaka Tazawa Fujitomi Co. said.

U.S. crude stocks were down for the fifth week in a row, and distillates and gasoline were seen rising last week, according to the first survey by Reuters on Monday.

“Oil prices are expected to be in a firm tone, amid expectations that fuel demand will increase rapidly, along with economic recovery in Europe and the United States,” Tazawa said.

The price gap between the two most active oil contracts in the world has narrowed in more than seven months, proving that US oil production is in a weak state of COVID-19 as the market can continue to have a low supply.

Iran negotiations

Negotiations to restore Iran’s nuclear deal came to a halt on Sunday after Judge Ebrahim Raisi hard-won the country’s presidential election.

Raisi on Monday called for talks between Iran and six world powers to revive the 2015 nuclear deal, but completely ruled out meeting US President Joe Biden, even if Washington removes all sanctions.

“Because of the lower probabilities of Iran’s return of crude oil to the market due to tough presidents, the market is also being supported,” Fujitomi’s Tazawak said.

Meanwhile, China has allocated 35.24 million tonnes of crude oil import quotas to non-state refineries in a second supply set for 2021, down 35 per cent from the same slot last year, according to a document seen by Reuters and two sources. knowledge of the subject.