May 12, 2021

Oil climbs over $67 as strong demand in US & China counters concerns over surging Covid cases in India 

Brent crude futures for July delivery rose 1.20% to $67.56 a barrel at 14:36 GMT, while West Texas Intermediate crude futures for June delivery were up 1.15%, trading at $64.31. Oil prices also pushed higher after Brussels announced plans for easing the existing travel restrictions for vaccinated tourists over the upcoming summer season.

The rally across US equity markets supported crude prices, as a weaker dollar made commodities priced in the currency more attractive for investors.

Also on Oil to hit $80 on largest ever demand jump – Goldman Sachs

“It’s a good-news/bad-news scenario on the demand front, with various re-openings offsetting surging cases elsewhere,” John Kilduff, a partner at Again Capital LLC told Bloomberg, adding that prices “would be considerably higher if it wasn’t for what’s going on in India and the drag that represents on the market.”

On Monday, India reported more than 300,000 new Covid-19 cases for the 12th day in row. So far, the new wave of the coronavirus pandemic has evoked a significant drop in fuel sales for the world’s third-largest consumer.

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