WTI Crude Oil Up as US Economic Data Comes in Strong, Raises Oil Demand Hopes
WTI crude oil is on the rise early on Friday over optimism surrounding the US's economic recovery following positive data releases in the
WTI crude oil is on the rise early on Friday over optimism surrounding the US’s economic recovery following positive data releases in the previous session even as markets anticipate global oil demand to rebound strongly next quarter. At the time of writing, WTI crude oil is trading at around $67.15 per barrel.
So far this week, WTI oil prices have strengthened by over 5% as economies around the world emerge from the coronavirus crisis, with hopes that oil demand worldwide could reach 100 million bpd. The rapid rollout of the COVID-19 vaccines across the US and Europe could drive increased travel activity during the peak holiday season this summer, supporting the upbeat mood in oil markets.
Crude oil also received a boost after weekly jobless claims in the US fell to the lowest level seen since the mid of March last year, just before the onset of the pandemic. The figures supported the risk-on sentiment in global markets, raising oil prices in turn.
Further optimism among oil traders was driven by expectations that OPEC and its allies could make plans to adjust their oil supply to offset any potential increase when Iran’s crude exports hit the markets. As talks on the nuclear activities gather steam, Western powers could soon lift sanctions against Iran, which could flood global oil markets with anywhere between 500k bpd and 1.5 million bpd of crude and condensate from Iran.
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