Source: Wind
Crude oil prices touched above $70 per barrel on Tuesday before OPEC and its allies (OPEC+) forecasted rising demand and increased production. The global economy continues to recover, pushing up prices of a range of commodities.
Specifically, on Tuesday, the July contract for WTI crude oil rose 2.52% to $67.99 per barrel, reaching a new high since October 2018; the August contract for Brent crude oil rose 1.85% to $70.6 per barrel.
(Image Source: Wind)
OPEC is gradually easing the scale of production cuts.
OPEC+ member countries and their allies agreed on Tuesday to increase oil production by about 0.45 million barrels per day starting next month. At the same time, Saudi Arabia agreed to continue easing the unilateral production cut of 1 million barrels per day implemented earlier this year.
In April this year, OPEC agreed to increase daily production by over 2 million barrels by the end of July, bringing the total increase in daily production over the past year to about 4 million barrels. Prior to this, the organization agreed to cut 9.7 million barrels of crude oil per day in early 2020 when the coronavirus first began to cause economic shutdowns, weakening global crude oil demand and leading to a drop in oil prices.
Now, with infection rates generally under control in most parts of Asia, including in China (the world's largest oil consumer), and steady progress in vaccination in the United States and Europe, OPEC and some non-OPEC oil-producing countries, led by Russia, are betting on a rebound in market demand.
According to OPEC representatives, OPEC+...