Oil Prices Hit their Highest Since 2018
Crude prices advanced by 2% on Thursday, supported by the prospect of more robust demand and lower inventories in the United States.
WTI crude, operating on the New York futures market, Nymex, advanced by 2.03%, trading at $74.96 a barrel for August delivery.
Brent crude from the North Sea, on ICE, gained 1.80% to $75.96 for September delivery.
Since the beginning of the year, the WTI crude has gained more than 50%. Demand for black gold has increased, too, thanks to the economic reopening and rebound in travel and transportation. OPEC and its allies have been optimistic about improved market conditions and prospects for fuel demand.
Oil producers are set to meet today to decide on future policy about crude production. They will have a videoconference at 2 pm London time.
OPEC reported that its crude oil basket closed yesterday at $73.60 a barrel, compared to $73.34 last week, representing an increase of 0,35%.
Bank of America recently stated that oil could climb to $100 per barrel amid accelerating demand.
The price of natural gas increased by 2%
Natural gas futures surged more than 2% today. For July, natural gas delivery increased by 2.31%, or Rs 6.30, to Rs 278.50 per mmBtu on MCX.
Gas delivery for August jumped by 2.36%, or Rs 6.30, to Rs 277.20 per mmBtu.
Market players are looking forward to the weekly inventory report from the Energy Information Administration.
Along with crude oil, natural gas has been one of the best performing asset classes this year. The commodity advanced by 49.26% so far in 2021. Gas prices followed the robust global trend and extended gains.
Due to forecasts for hot summer and before the beginning of the Tokyo 2020 Olympic Games, June shipments to Japan increased by 18% compared to the previous month.
On the other hand, China imported around 6.4 million tonnes of gas in June. It is less than May; however, it is a 26% rise compared to last year. According to traders, China is preparing for winter, and it results in a lot of buying.
