Wed, 23 Jun 2021

Oil prices rise amid demand optimism

18 May 2021, 06:30 GMT+10

NEW YORK, May 17 (Xinhua) -- Oil prices advanced on Monday, amid market confidence in the prospects of fuel demand.

The West Texas Intermediate for June delivery added 90 cents to settle at 66.27 U.S. dollars a barrel on the New York Mercantile Exchange. Brent crude for July delivery increased 75 cents to close at 69.46 dollars a barrel on the London ICE Futures Exchange.

Traders priced in a solid demand recovery despite surging COVID-19 infections in countries such as India.

According to the latest forecasts published by the International Energy Agency (IEA) last week, global oil demand is set to increase by 5.4 million barrels per day this year, about 300,000 barrels less than previously thought. This is due to downward revisions for the first and second quarters. The IEA continues to envisage a robust recovery of demand in the second half of the year.

A weaker U.S. dollar also provided some support. The dollar index, which measures the greenback against six major peers, fell 0.17 percent to 90.1661 in late trading on Monday. Historically, the price of oil is inversely related to the price of the U.S. dollar.

For the week ending Friday, the U.S. crude benchmark gained 0.7 percent, while Brent crude climbed 0.6 percent, based on front-month contracts.

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