Business News: Oil Hits 32-Month High as Demand Continues to Grow

• Oil prices increase to the highest in two years as the dispensing of COVID-19 vaccines decrease the pressure faced by the US and Europe
• The International Energy Agency has estimated that global oil demand will revert back to pre-pandemic levels by late 2022.
• The United States benchmark is on course for a fifth quarterly advance, seen as the best-run post-2010

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Oil prices rose to the highest in over two years following volatile trade on Thursday as the dispensing of Covid-19 vaccines ease the strain on the US and Europe.

The International Energy Agency predicted that global oil demand will return to pre-pandemic levels by late 2022.

The US benchmark is on route for a fifth quarterly advance, implying the best run post-2010, as consumption improves while the Organization of Petroleum Exporting Countries and its allies lesson supply curbs only gradually.

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BusinessTech reported that traders are currently following discussions in Vienna this week between Iran and world powers to reimplement a nuclear accord, possibly allowing US sanctions on the nation's crude exports to be lifted.

According to Reuters, the U.S. Treasury confirmed that they have eliminated sanctions on three former Iranian officials and on two companies previously involved in trading Iranian petrochemical products.

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Oil over the years

Last year, Briefly News reported that the price of oil increased beyond $40 - which was about R676 at the time - for the first time in three months. This comes after it fell by over 30% and was considered the worst drop since the Second Gulf War.

The information available shows that Brent crude rose to $40.12 a barrel amid reports that OPEC+ members are calling for an extension of production cuts currently set to end in June 2020.

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A leading member of the Organisation of Petroleum Exporting Countries (OPEC), Saudi Arabia, has reportedly called for a one to three month extension. Per a report by Business Insider, this comes as a sharp contrast to a one-month only extension being called for by Russia and other OPEC+ members.

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Source: Briefly News