Oil prices hit their highest level in more than a year on Tuesday amid expectations that oil demand will recover in 2021.
Benchmark Brent crude jumped 97 cents, or 1.7 percent, to $57.30 a barrel, while U.S. West Texas Intermediate crude futures were up 98 cents, or 1.9 percent, at $54.56.
Analysts said an uptick in economic and travel activity fueled by Covid-19 vaccines could accelerate in the second half.
Goldman Sachs expects global oil demand to recover to pre-pandemic levels of 100 million bpd by August this year, while prices are expected to rise to $65 a barrel by July amid a tight oil market and slow rebound in demand.
On the supply side, a survey by Reuters found major producers were restraining output growth “roughly in line with their commitments.”
The number of new coronavirus cases globally has fallen for the third week in a row, the World Health Organization (WHO) reported on Monday, but urged countries not to let up efforts to defeat the disease.
“There are still many countries with increasing numbers of cases, but at the global level, this is encouraging news,” said WHO chief Tedros Adhanom Ghebreyesus.
“It shows this virus can be controlled, even with the new variants in circulation. And it shows that if we keep going with the same proven public health measures, we can prevent infections and save lives”.
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