Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Oil hits two-year highs on rising demand expectations

Commodities Jun 10, 2021 03:26PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Crude oil storage tanks are seen in an aerial photograph at the Cushing oil hub in Cushing, Oklahoma, U.S. April 21, 2020. REUTERS/Drone Base
 
LCO
-1.30%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Scott DiSavino

NEW YORK (Reuters) -Oil prices edged up to their highest in over two years in volatile trade on Thursday, on optimism for strong economic demand after new U.S. unemployment claims fell to their lowest since the country's first wave of COVID-19 last year.

The market shook off a brief plunge after media reports suggested the United States lifted sanctions on Iranian oil officials.

The U.S. Treasury later said it had removed sanctions on three former Iranian officials and on two companies previously involved in trading Iranian petrochemical products. A U.S. official told Reuters that the activity was "routine" and not related to talks with Iran over reviving the 2015 deal to restrict its nuclear weapons development.

Brent futures rose 30 cents, or 0.4%, to settle at $72.52 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 33 cents, or 0.5%, to end at $70.29.

Those were the highest closes for Brent since May 2019 and WTI since October 2018.

The number of Americans filing new claims for unemployment benefits fell last week to the lowest level in nearly 15 months, while consumer prices increased solidly in May as the pandemic's grip on the economy continues to ease.

"The recent unemployment and labor data published in the (United States) are a definite positive sign that the recovery in the country is speeding up," Louise Dickson, analyst at Rystad Energy, said.

"More business activity means more energy consumption, and a better economy is a needed prerequisite for road and air traffic to increase."

The Organization of the Petroleum Exporting Countries said oil demand would rise by 6.6%, or 5.95 million barrels per day (bpd), this year. The monthly forecast was unchanged for a second consecutive month.

"Oil prices are still grinding higher. The demand outlook continues to strengthen and supplies are not necessarily keeping up," said John Kilduff, partner at Again Capital LLC in New York.

Kilduff noted, however, that the market was "priced to perfection in relative tightness," and said Thursday's brief midday price drop shows what can happen if Iran or OPEC+ add more barrels to global supplies.

OPEC+ is an alliance between OPEC and other producers including Russia.

Analysts have said Iran could provide about 1 million to 2 million barrels per day (bpd) in additional oil supply if a deal is struck and sanctions lifted.

Oil hits two-year highs on rising demand expectations
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Fahmi Yazit
Fahmi Yazit Jun 10, 2021 1:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Still lifed despite only one official. What a news..its good if the oil price low right? Fools..
Nguyen Quang Vuong
Nguyen Quang Vuong Jun 10, 2021 10:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Buy Now!
토니 김
토니 김 Jun 10, 2021 7:21AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Mian Junaid
Mian Junaid Jun 10, 2021 4:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
min min
min min Jun 10, 2021 1:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email