OPEC and its close allies are keen on increasing collective output by an estimated 500,000 barrels each day, a medium boost in the global supply of crude oil as the oil prices continue to recover.
- The US crude price nearly hit its highest level, $72$ in over 2.5 years in the current week, before flattening at a lower price.
- The increase in oil prices coincides with gains in other commodities’ prices ranging from metals to agricultural goods.
- In economies such as China and the US, and some countries in Europe, vaccination campaigns have enhanced economic recoveries. In other oil-rich economies such as Brazil and India, the economic rebounds are more uneven.
The International Energy Agency has slashed its forecast on the potential recovery in oil demand in the second half of 2021.
DJI dips -0.21
Source: The Wall Street Journal.