WTI and Brent crude contracts have recovered strongly from their historic lows of last March on the back of positive news about successful vaccinations, massive fiscal stimulus, and OPEC’s supply cuts.
The oil prices have managed to climb at pre-pandemic levels, with the Brent contract rising near 67 dollars per barrel, and WTI advancing towards 62 dollars driven by strong demand for gasoline, diesel, and fuel oil.
One of the most important drivers of the elevating prices has been the recovery of petroleum demand from China and other Asian economies to pre-pandemic levels, coupled with the improving global economic growth outlook.
The supply side of the global energy market has been very supportive of the recovery of oil prices. The decisions made by OPEC and its allies to hold supply steady together with the extra production cuts by Saudi Arabia have allowed the oil prices to bounce back above 60 dollars mark.
Beyond the drop in US crude inventories to their lowest since March, the oil prices advanced towards yearly highs on Tuesday due to the unexpected US oil supply disruptions caused from last week’s monster snowstorm in Texas.
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