Brent rose 34 cents to $73.03 a barrel by 12:56 p.m. EDT (1656 GMT). Earlier within the session, it reached $73.64 a barrel, its highest since April 2019.
US West Texas Intermediate rose 27 cents to $71.18 a barrel. It hit a session high of $71.78 a barrel, its highest since October 2018.
“The two leading crude markers are trading at (almost) two-and-a-half-year highs amid a potent bullish cocktail of demand optimism and OPEC+ supply cuts,” stated Stephen Brennock of oil dealer PVM.
“This backdrop of strengthening oil fundamentals have helped underpin heightened levels of trading activity.”
Motor car site visitors is returning to pre-pandemic ranges in North America and far of Europe, and extra planes are within the air as anti-coronavirus lockdowns and different restrictions are being eased, driving three weeks of will increase for the oil benchmarks.
The temper was additionally buoyed by the G7 summit the place the world’s wealthiest Western international locations sought to mission a picture of cooperation on key points such as restoration from the COVID-19 pandemic and the donation of 1 billion vaccine doses to poor nations.
The International Energy Agency stated on Friday that it anticipated world demand to return to pre-pandemic ranges on the finish of 2022, extra shortly than beforehand anticipated.
The OPEC+ group has been restraining manufacturing to assist prices after the pandemic worn out demand in 2020, sustaining robust compliance with agreed targets in May.
On the provision facet, heavy upkeep seasons in Canada and the North Sea additionally helped prices keep high, stated Rystad Energy analyst Louise Dickson.
“In June 2021, Rystad Energy estimates more than 330,000 barrels per day of oil and condensate supply is offline at Canada oil sands projects, and 370,000 bpd of supply offline in the North Sea,” Dickson stated.
US oil rigs in operation rose by six to 365, the very best since April 2020, power providers firm Baker Hughes Co stated in its weekly report.
It was the largest weekly enhance of oil rigs in a month, as drilling firms sought to profit from rising demand.