Brent price rises above $75 for the first time in 2 years

Oil prices continue to rise, Brent is trading above $75 per barrel for the first time in two years on fears that the supply on the oil market will not be able to meet the rising demand, Interfax reports.

Oil has risen in price by more than 40% since the beginning of this year: the recovery of the economies of the United States, Europe and China after the crisis caused by the COVID-19 pandemic is stimulating demand growth, despite the persistence of a difficult epidemiological situation in several other regions of the world.

The recovery in tourist demand could lead to a rise in the price of Brent to $ 100 per barrel next year, experts predict Bank of America.

The cost of August futures for Brent oil on the London ICE Futures exchange by 8:20 Kyiv time on Tuesday amounted to $75.09 per barrel, which is $0.19 (0.25%) higher than the price at the close of the previous session. As a result of trading on Monday, these contracts rose by $1.39 (1.9%) to $74.9 per barrel.

The price of WTI crude oil futures for July at the electronic trading of the New York Mercantile Exchange (NYMEX) by this time amounted to $73.63 per barrel, which is $0.03 (0.04%) below the final value of the previous session. By the close of the market on Monday, the value of these contracts increased by $2.02 (2.8%) to $73.66 per barrel. July futures expire on Tuesday, more actively traded August contracts rose in price during trading by $0.04 (0.05%) up to $73.16 per barrel.

“Optimism about the outlook for demand is now quite high and supply shortages are coming to the fore,” says Vandana Hari, founder of Vanda Insights.

The focus of the market remains negotiations on the restoration of the Joint Comprehensive Plan of Action (JCPOA) on the Iranian nuclear program, but there are no results that could lead to an increase in Iran's oil production so far.

Tags: oil, USA, OPEC, price, petroleum products, oil deliveries, pandemic, economy, Europe, China

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