Brent crude oil hit $ 70 a barrel Tuesday, reaching its peak in two months at a major economic summit.
The global oil price, which fell below $ 20 a barrel last April when Covid-19 disrupted oil, has now returned to its pre-epidemic epidemic with traders asking for oil to rise later this year.
Vaccination in developed countries and restrictions are expected to lead to more international exports and greater wealth, while concerns about the availability of long-term resources such as copper and oil have grown.
Brent rose nearly 1.1% to $ 70.24 a barrel at the start of a London business, but later returned to $ 68.65. West Texas Intermediate, a US counterpart, also offered its profits to sell 1.3% to $ 65.42 a barrel.
Although the second meeting took place, Brent and WTI are almost one-third in recent years.
“The excitement is reflected in the belief that the economic recovery will soon be coupled with oil refurbishment,” said Tamas Varga, an expert at the oil company PVM in London.
He warned, however, that recovery is still facing challenges such as the emergence of a type of coronavirus that was first identified in India.
Recent gains in oil prices may be due to concerns that long-term oil prices will not keep pace with the coming years, as global oil companies cut back on the effects of natural disasters.
Long-term oil exploration is expected to rise in the next decade or so, however this could leave a period when oil consumption will increase as growth slows.
The International Energy Agency said on Tuesday that all new oil and gas exploration activities should be phased out this year if the world has a chance to achieve its goal of reducing global warming to 1.5C more than before the plague.
While this is only one case from an OECD-funded agency, it shows the pressure on many oil producers – especially those listed publicly such as BP and Royal Dutch Shell – to expect a reduction in the cost of archeology.
Opec and other major oil producers, which are hampering production during the epidemic due to population downturn, are beginning to add barrels to the market as the work progresses, but it is unclear if they have enough power to get it to rise above its pre-epidemic epidemic of nearly 100m per day.
The IEA acknowledged that “continued oil sales are essential”.
Energy Aspects, the consultant, said Opec and partner organizations such as Russia should start increasing in production from July to address global residues, but said it did not expect prices to continue anytime soon.
Oil recovery is expected to be uneven for the next few months.
“The sharp rise in oil prices is not slowing down this summer as the deficit will continue this year, among other things, due to vaccinations, focusing on zero Covid-19 cases and vigilance in reopening Asia-Pacific will lead to global hamstrung travel until mid-2022,” he said. “said Energy Aspects.
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