Global crude prices advanced as optimism over heavy demand by the world’s major consumers, China and the US, offset falling demand in India, which is currently battling the second wave of the Covid-19 pandemic.
Brent crude futures for July delivery rose 1.20% to $67.56 a barrel at 14:36 GMT, while West Texas Intermediate crude futures for June delivery were up 1.15%, trading at $64.31. Oil prices also pushed higher after Brussels announced plans for easing the existing travel restrictions for vaccinated tourists over the upcoming summer season.
The rally across US equity markets supported crude prices, as a weaker dollar made commodities priced in the currency more attractive for investors.
“It’s a good-news/bad-news scenario on the demand front, with various re-openings offsetting surging cases elsewhere,” John Kilduff, a partner at Again Capital LLC told Bloomberg, adding that prices “would be considerably higher if it wasn’t for what’s going on in India and the drag that represents on the market.”
On Monday, India reported more than 300,000 new Covid-19 cases for the 12th day in row. So far, the new wave of the coronavirus pandemic has evoked a significant drop in fuel sales for the world’s third-largest consumer.
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