On July 22, U.S. oil rose by more than 2%, continuing the gains of the previous three trading days. The settlement price was US$71.91/barrel, an increase of more than 10% from the low of US$65.01/barrel hit on Tuesday. Investors expected As the economies of countries such as the United States, India and Europe recover from the new crown epidemic, the global crude oil market will further tighten and continue until the end of 2021.
On Thursday (July 22), U.S. oil continued its gains from the previous three trading days, rising by more than 2%, with a settlement price of $71.91 per barrel; Brent oil rose by $1.56, or 2.2%, to close at $73.79. / barrel; As the economy recovers from the COVID-19 crisis, the market expects tight crude oil supply to continue until the end of 2021.
In the world's largest oil-consuming markets, gasoline demand has basically returned to normal, and road traffic data also show similar trends. In addition, in the past two weeks, the number of flights in Europe has been close to two-thirds of the same period in 2019. Official U.S. data showed that both gasoline and refined oil inventories fell during the peak summer driving season.
Price Futures Group senior analyst Phil Flynn said that the extent of demand destruction has been seriously exaggerated and demand will not disappear, so what we are seeing now is a very tight market.
U.S. Energy Information Administration (EIA) data shows that inventories at Cushing, the U.S. Oklahoma crude oil storage center and U.S. crude oil delivery site, have fallen for six consecutive weeks, reaching the lowest level since January 2020 last week. .
Rebecca Babin, senior energy trader at CIBC Private Wealth, said that the market is obviously more worried about supply being in short supply and that growth will continue and that we will have insufficient supply in the short term.
Crude oil prices plunged nearly 8% on Monday as concerns about the Delta variant of the virus and its impact on economic recovery rocked financial markets. In addition, the OPEC+ alliance also held a meeting over the weekend and finalized a plan to resume previously suspended production. John Kilduff, a partner at
Again Capital LLC, said that there is not enough oil supply and increasing daily production by 400,000 barrels per month will not solve the problem. You will see global inventories continue to tighten.
With demand still outstripping supply in the second half of the year, Morgan Stanley forecasts that global benchmark Brent crude oil will trade in the mid-to-high $70-$80 per barrel range for the remainder of 2021.
This article comes from Huitong.com
