US West Texas Intermediate crude future rose by 8 cents, to $73.38 per barrel, marking a 2.4% gain for the week. Despite the ever-increasing demand, OPEC+ is still cautious in returning more output to the market from August. As a result, both WTI and Brent crude benchmark contracts hit their highest since October of 2018.
"The market certainly has momentum behind it...It's really in the hands of OPEC+," said Commonwealth Bank commodities analyst Vivek Dhar. That being said, the OPEC+ is taking its time adjusting its supply levels, as the economy is still fragile. The pandemic recovery is on track to open up big fuel demands in the near future, as the airline industries starting to operate at some capacity again. ANZ analysts predicted that the OPEC+ would step up its output by 500,000 barrels per day in August, which is a relatively small increase considering the demand is already creeping up. The oil price might be climbing for the foreseeable future.
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