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Oil prices hit 3 month highs during week ending June 10

EconomyOil prices hit 3 month highs during week ending June 10

World (The Times Groupe)- Oil prices hit three month highs for the week ending June 10, driven by rising fuel demand in the US with the start of the travel season and an increase in China following COVID19 restrictions.

International benchmark Brent crude traded at as high as $124.40 this week, while American benchmark West Texas Intermediate (WTI) reached $123.18, both reaching their highest levels since early March.

Prices increased mainly due to fears that global supply would fall short of demand, especially in the US and China.

Oil demand is expected to increase in China, the world’s second largest oil consumer, as a result of easing COVID19 regulations, while demand in the US is expected to spike as summer driving season begins.

Supply levels from OPEC+ are thought to fall short of global demand, further pushing prices up.

OPEC+ ministers decided last week to add 216,000 barrels of oil per day to the market in July and August, lower than what the market is expected to need.

Meanwhile, the US Energy Information Administration (EIA) raised its forecast for global crude oil prices by $4 for 2022, citing ‘heightened levels of uncertainty’ caused by a variety of factors, including Russia’s full-scale invasion of Ukraine.

In 2022, the EIA expects Brent crude to average $107.37 a barrel and WTI to average $102.47 a barrel.

The price of Brent was $124.06 at 1030 GMT on Friday, an increase of 0.80% from the previous session. At the same time, WTI was at $122.41 per barrel, up 0.74% from the previous session.

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