bp5ah schreef op 4 juni 2021 11:48:
Crude edges higherCrude oil prices pushed higher Friday, continuing the recent rally to multi-year highs amid optimism that global demand for fuel was recovering from the depths of the pandemic.
By 6:30 AM ET, U.S. crude was up 0.5% at $69.15 a barrel, climbing to the highest level since October 2018. Brent was up 0.5% at $71.65, after climbing to the highest since May 2019. Both contracts have climbed about $5 each in the past two weeks.
Confidence is flooding into the oil market that demand will surge in the second half of the year as the U.S., China and Europe lead a robust recovery from the pandemic, despite a Covid-19 comeback in parts of Asia.
U.S. crude stockpiles fell more than expected on Thursday in another bullish sign for the market, with data from the U.S. Energy Information Administration showing a draw of just over 5 million barrels last week, bigger than the expected 2.4-million-barrel draw.
Still, doubts about the sustainability of prices at these levels are starting to emerge.
The CEO of Russian producer Gazprom (MCX:GAZP) said that “it’s important not to allow the market to overheat” and that “an oil price in a range of $65 to $70 a barrel isn’t stable in the long term”, while Lukoil’s CEO said “we shouldn’t allow a sharp hike in the price”.
This will put the upcoming meetings of the Organization of the Petroleum Exporting Countries and other top producers, including Russia, firmly in focus.
“Given that Brent is now trading above US$70/bbl, the pressure to increase output will likely only grow,” said analysts at ING, in a note.
Later Friday, traders will focus on the latest weekly update from Baker Hughes of the number of oil rigs, while the CFTC will release its weekly commitments of traders report.