On Tuesday, oil quotations continued to rise on expectations of a return to the dock-like consumption model as the crisis emerges, Interfax reports.
By 7:20 a.m.Kyiv time, April Brent futures rose in price on the London ICE Futures stock exchange by $0.49 (0.81%) to $61.05 per barrel. During the trading on Monday, Brent rose in price by $1.22 (2.1%) to $60.56 per barrel. At the same time, the price of Brent surpassed $60 per barrel for the first time since January 24, 2020, according to the Dow Jones Market Data.
On Tuesday morning, March futures for WTI rose in price in electronic trading on the New York Mercantile Exchange (NYMEX) by $0.47 (0.81%) to $58.44 per barrel. The contract rose by $1.12 (2%) to $57.97 per barrel in the previous session, the highest level since January 21 last year.
Analysts point to signs of a recovery in oil demand around the world, S&P Global Platts writes. Imports to China hit a six-month high last week. In India, demand is returning to pre-pandemic levels thanks to increased vehicle traffic. Meanwhile, the US became the largest buyer of its oil in January.
“There is great optimism that vaccinations will play a key role in bringing the global economy back to normal,” said Edward Moya, senior market analyst at OANDA.
The market is also supported by growing hopes for adopting a new package of measures to support the US economy, ANZ analysts say.
Analysts at ANZ also note that the number of rigs in the US is still 60% below the level seen before the coronavirus outbreak, signalling companies' reluctance to ramp up drilling.