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22 Jun, 2021 07:45

Oil rallies above $75 for first time in more than two years as investors assess tightening market

Oil rallies above $75 for first time in more than two years as investors assess tightening market

Global prices for crude extended their rally, pushing above $75 a barrel for the first time since April 2019, as a rapid rebound from the Covid-19 pandemic across the world underpins increasing fuel consumption.

The international benchmark Brent rose 0.36% to $75.17 per barrel as of 6:32am GMT on Tuesday. West Texas Intermediate, which tracks US crude grades, grew by a modest 0.05% to $73.66 per barrel.

Brent oil has rallied more than 40% since the beginning of the year as the fuel demand outlook has been rapidly improving amid strong economic recoveries in the US, China and Europe.

Also on rt.com Oil price could hit $100 this year on tight supply and rising demand

“Demand optimism is now well established and a tightening of the market is very much in the spotlight,” Vandana Hari, the founder of Vanda Insights, told Bloomberg. “If there is a pause in this rally, it will likely come from the supply side.”

Bank of America earlier said that global crude prices might push above $100 per barrel as early as the next year when travel rebounds.

At the same time, ongoing outbreaks of Covid-19 in several countries have left fuel demand recovery uneven. Moreover, a crackdown on private refiners in China, the world’s largest oil importer, is chilling investor sentiment.

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