U.S. West Texas Intermediate crude of future for August rose by 3.2% to $75.82 per barrel. This marks its highest level since October of 2018. The same can be said with the international benchmark Brent crude, as its price for September climbed to $76.10 per barrel. Oil prices have been on the surge since the beginning of 2021, as the economy recovers. The WTI has climbed more than 50% since January, from $48.5 per barrel. The demand has increased as people take to the roads amid the economic reopening, as well as transportation of goods and traveling rebound.
“During the month of June, we estimated that the market was in a 2.3 million barrel per day deficit... The bottom line, demand is surging as we head into the summer travel season, and that is against a nearly inelastic supply curve,” said Jeff Currie, the global head of commodities research at Goldman Sachs. The expected 500,000 barrels per day production increase proposed by OPEC is not nearly enough to keep the price stable.
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