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Oil rises in price in the hope of improved demand in the summer

The cost
oil on Thursday continues to grow
after a 1% rise in the previous session.
Participants’ expectations are stimulated
the market for increasing demand for energy
in the coming summer months. Existing
fears of a strong
the spread of COVID-19 among
the population of India, Japan and Brazil,
which,
oddly enough, almost do not affect
an unexpectedly emerging optimism in the market.

Thus, Brent crude oil in June rose in price by 0.6%, to $ 67.47 per barrel. US West Texas Intermediate crude rose 0.6% in June to $ 64.52 per barrel.

Previously
OPEC + countries retained
the earlier decision on a gradual descent
restrictions on oil production in the period from
May to July, and it is connected
with expectations of growing demand for the current
year. The Alliance does not rule out and
Togo,
that world stocks in July will rise to
2.95 billion barrels.

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AND
although the COVID-19 pandemic continues to sow
chaos in some countries, yet demand
for oil is steadily recovering.
Nobody canceled the postponed
demand
on travel, which in case of improvement
the situation with the coronavirus promises
generate high demand for fuel
both in Europe and North America.
Analysts of the largest international
Citibank expects vaccinations against
coronavirus
in
these regions will lead to an increase in demand
for black gold in the summer until
unprecedented level – 101.5 million barrels per
day.

In addition to
this, in China for the upcoming long
weekend promises to increase consumption
fuel, since the inhabitants of the PRC traditionally
travel a lot on holidays.

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At the same time
India struggles with this almost unsuccessfully
with the second wave of COVID-19. Total number
deaths from this disease on Wednesday
exceeded 200 thousand. The total number of identified
of coronavirus cases in India has reached
almost 18 million, the number recorded for
day of deaths – 3293. The situation is getting worse
a large shortage of hospital beds and
medical oxygen. Many residents
countries cannot sign up for
vaccination scheduled to start
for may. Unfortunately, although India is
one
of the world’s largest manufacturers
vaccines, to date have not yet
has stocks of this drug
for nearly 600 million people who expect
vaccination. Not much
the situation is better in Brazil and
Japan.

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IN
in this regard, Citibank experts warn
that due to the raging COVID in these
countries there is a great risk of introducing new
more
hard restrictions that may
significantly collapse local demand for
energy carrier. Because of the rise in oil prices
so far it is being held back significantly

Participants
market focus also
on the growth of production indicators
Refineries in the USA, as well as on the reduction of inventories
distillates last week. According to
data released by the Office
energy information on Wednesday,
US crude oil inventories increased by 90
thousand barrels last week. Analysts
much higher expected
growth indicators (by 659 thousand barrels).

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