Oil soars as US and European economies reopen
Oil prices soared on Tuesday with the hopes for a solid recovery in fuel demand after the reopened US and European economies compensate concerns over the spread of COVID-19 cases in Asia.
Brent crude futures traded at $ 69.65 at 0517 GMT, up 19 cents per barrel, or 0.3%, while West Texas Intermediate (WTI) increased 18 cents or 0.3% to $ 66.45 per barrel.
Both contracts rose more than 1% on Monday. Behind the gain is the growing optimism of the strong recovery in gasoline and other fuels in the US and Europe in light of easing the various restrictions associated with the pandemic.
There are concerns about the spread of cases of infection in Asia, but it is thought to be resolved soon as the vaccine becomes widespread.
It is hoped that Brent prices will rise to $ 75 a barrel by the end of this month.
The President of the United States has announced that he will send at least 20 million doses of COVID-19 vaccine abroad by the end of June, meaning which is the first time the United States is sharing vaccines.
In the United States, the state of New York is removing masks in most places now open to the public for people who have been fully vaccinated against COVID-19 as of Wednesday, and other regions are opening up their economies.
However, Asia has declared the highest number of local infections in recent months and there is an increase in Taiwan cases. The country has reintroduced lockdown measures.
In India, the second most affected country by the outbreak, domestic gasoline and diesel sales by state refineries fell by a fifth in the first half of May as epidemic restrictions hit industrial activity and consumption, according to preliminary data Monday.
As Iran and the US try to reinstate the 2015 Iran nuclear deal, expectations that Iran will restart oil exports are suppressing the increase in oil prices.
Related Articles
COVID-19 restrictions in Asia affect oil sensitivity
Oil prices drop due to fears of inflation, and rising infections in Asia
While US oil stocks are growing less than expected, there is stability in oil
