International crude oil futures hit a two-year high

On Friday, crude oil futures closed at their highest level in two years. WTI futures for July delivery on the New York Mercantile Exchange rose 81 cents, or 1.2%, to $69.62 a barrel. Last week, WTI crude oil rose 5%; Brent crude oil futures in London, the benchmark of global crude oil prices, rose 58 cents, or 0.8%, to US $71.88 a barrel. Brent crude oil rose 4.6% overall.
According to CNBC, since the beginning of this year, with the opening up of the global economy, the “current strong demand” for oil, coupled with the recovery of automobile, air travel and cargo transportation, the oil price may rise to $80 / barrel this summer.
“Car travel is increasing, the European market is reopening, and demand (for oil) is growing very fast,” said Francisco blanch, global commodities and derivatives strategist at Bank of America He believes that Brent crude oil has reached the quarterly target price of $70 and that “in the next three years, the oil price may rise to $100.”. That will be the story of 2022, 2023. ”
“Part of the reason is that OPEC holds all the cards, and the market is not particularly sensitive to supply side prices, there is a lot of pent up demand,” blanch explained. Inflation also exists in many places. Oil has been lagging behind the price rise of the whole economy. ”
On June 1 local time, the OPEC + meeting decided to continue the production increase plan formulated in early April. The bank expects that global demand may usher in a super seasonal recovery from July to August, but the negative impact of the production increase plan on oil prices is expected to be limited.
According to media reports, an uncertain factor is that Iran’s oil will return to the market if the United States and Iran reach an agreement to lift sanctions. However, the slow progress of negotiations on the nuclear program between the two countries also reduces the expectation of Iran’s oil supply returning to the market this year.

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