Strong demand pushes oil to a 6-week peak

EconomyOilPrices 2021-04-29 20:11A-AA +

Shafaq News / Oil prices rose to their highest levels in 6 weeks, on Thursday, thanks to strong data for the US economy, a decline in the dollar and an expected recovery in demand, which nullified the effect of concerns about the growing Covid-19 infections in Brazil and India.

Brent futures rose $ 1.29, equivalent to 1.9%, to determine the settlement price at $ 68.56 a barrel, while US West Texas Intermediate crude increased $ 1.15, or 1.8%, to close at $ 65.01 a barrel.

Thus, the benchmark continues its gains for the third day in a row, registering the highest close since March 15th.

Bjornar Tonhaugen, Director of Oil Markets at Rystad Energy, said: “The summer season is the season for trips, and vehicle drivers in the United States, China and the United Kingdom are consuming more fuel, a development that the market believes will compensate for the Indian slowdown due to Covid-19.”

He added that oil prices received additional support from the drop in the dollar, which made “oil cheaper to buy internationally.”

The US currency hovered near its lowest level in nine weeks, under the weight of expectations for continued monetary easing from the Federal Reserve, and bold spending plans from US President Joe Biden.


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