Will Oil Hit $80 This Summer?
India, the world’s third-largest oil importer, is the latest coronavirus hotspot. It has recently hit a record-breaking number of new daily coronavirus cases—a statistic that dented oil demand and pressured oil prices. OPEC+, out of its own necessity, has intervened in the oil market on the supply side of the equation to offset the pandemic-depressed oil demand. And despite the group’s relative success at curbing oil production to prevent excess oil inventories from ballooning before the market fully recovers, India’s booming case counts have prevented oil prices from a quicker recovery. Click Here to read more from Oil Price.
Oil Climbs to Fresh 6-Week High on Bullish Demand
Oil prices rose to fresh six-week highs on Thursday as strong U.S. economic data, a weak dollar and an expected recovery in demand outweighed concerns about higher COVID-19 cases in Brazil and India. Brent futures rose $1.29, or 1.9%, to settle at $68.56 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.15, or 1.8%, to end at $65.01. That put both benchmarks up for a third day in a row to their highest closes since March 15. Click Here to read more from Reuters.
Crude Oil Prices Climb on Falling Stockpiles, Easing Lockdowns in the US and Europe
Crude oil prices hovered near two-month highs during Wednesday’s APAC trade after rising 2.55% a day ago. Prices are buoyed by a larger-than-expected fall in API crude inventories and reopening optimism in the US and Europe. WTI surged even as the DXY US Dollar index strengthened following Treasury Secretary Janet Yellen’s comment on interest rates, which spurred broad profit-taking overnight. This reflected strong upward momentum for oil as the demand outlook strengthened. Click Here to read more from Daily FX.
U.S. Crude Oil Imports from OPEC Are Down, but Imports from Canada Remain High
Voluntary OPEC production cuts have been contributing to reduced U.S. crude oil imports from OPEC so far in 2021. Comparatively stable U.S. crude oil imports from Canada, however, have been mostly the result of longer-term trends. Between 2005 and 2020, U.S. crude oil imports from OPEC members decreased rapidly, but imports from non-OPEC members remained relatively high. In particular, U.S. crude oil imports from Canada more than doubled to average 3.6 million b/d in 2020, which was more than the combined total of crude oil imports from all other countries. Click Here to read more from EIA.