The cost of the August Brent oil futures by 15:15 Moscow time for the first time since March 8 this year exceeded $ 71 per barrel, according to trading data from the Intercontinental Exchange (ICE).
By 15:39 Moscow time, raw materials cost $ 71.02 per barrel. Thus, compared to the close of yesterday’s trading, the price of Brent increased by almost 2.5%.
Earlier today, WTI crude oil showed a record increase since October 2018. For the first time since then, its price exceeded $ 68 per barrel. By 15:39 Moscow time, July WTI futures were trading at $ 68.46 per barrel. Compared to the closing of trading on May 31, its value increased by 2.3%.
Analysts interviewed by Bloomberg explained that oil is getting more expensive amid a statement by the OPEC + committee that the surplus of raw materials that has accumulated during the coronavirus pandemic is almost exhausted, so that in the second half of the year, stocks will decline rapidly. According to Oversea-Chinese Banking economist Howie Lee, there is now confidence that the growing demand will be able to absorb an additional 2 million barrels per day from Iran. In addition, the recovery in oil consumption boosted demand from the US.
This was confirmed by the Deputy Prime Minister of Russia Alexander Novak. According to him, the oil market is now seeing a significant improvement in the situation compared to the one that was a year ago due to the coronavirus pandemic. Thus, the stocks of raw materials have decreased, demand has grown, and prices have stabilized, the Deputy Prime Minister noted on the air of the Russia 24 TV channel. At the same time, Novak added that the risks of high uncertainty still remain in the future.
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