On Tuesday, both US and UK crude oil futures’ prices had winded down the day at their highest levels since mid-March last year, as investors’ optimism spurred up amid a sharp uptick in demands alongside OPEC+ decision to gradually boost output.
Aside from that, a surprise decline in US crude inventory build had added to further impetus in the day’s large-scale gains in crude oil contracts. If truth is be told, in the day’s blistering rally in crude oil futures’ prices was almost entirely galvanized by an OPEC+ decision to gradually increase output, which happens to be the first time ever when oil giants were not wrestling each other over market shares and overflooding commodity markets to capitalize on a higher crude oil price.
Besides, a series of upbeat economic data including a rise in US manufacturing activities alongside an increase in Chinese factory activities in May, had added to a bullish bias in the day’s commodity market. On top of that, a decline in US crude oil inventories last week alongside a rapidly rising gasoline demand in the United States over Summer driving season with oil prices hitting as much as $3.02 per litre as of last Friday, had sent investors’ morale on cloud nine.
UK crude hits $71/barrel
Citing statistics, in the day’s commodity market round off, Brent crude futures scheduled to be expired on August surged 1.3 per cent to $70.25 a barrel after hitting $71 per barrel earlier in the day, the crude oil contract’s highest level since March 8, while US WTI (West Texas Intermediate) crude oil futures due to be expired by July, winded up the day 2.1 per cent higher to $67.72 a barrel.
Meanwhile, citing that a plausible return of Iranian crude could yield negative impacts on market landscape despite a robust demand outlook, a partner at Again Capital LLC in New York, John Kilduff said, “The deal with Iran is very much in flux about whether or not it will get done, which is making the market tense. ”