Brent Oil Prices Rise to USD 70 Per Barrel

Lovata Andrean

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budget travel 2

Rancakmedia.comBrent oil for June delivery rose 28 cents, or 0,4%, to $67,05 a barrel, after rising 6,0% last week. Brent oil prices rose slightly in Tuesday morning trading in Jakarta (20 April 2021), helped by a less strong US dollar, but the increase was limited by the expected impact of demand due to increasing cases of the corona virus in India.

Brent Oil Prices Rise

Oil prices raw brent Futures for June delivery rose 28 cents, or 0,4%, to $67,05 a barrel, after rising 6,0% last week. At that time, West Texas Intermediate crude oil futures ( WTI ) for May shipments closed the session down 25 cents, or 0,4%, to $63,38 a barrel, after rising 6,4% last week.

The US dollar was at a 6-week low against other currencies on Monday (19 April 2021), with the government's resignation approaching its weakest level in 5 weeks. The dollar index, which measures the greenback against 6 specific competitors, fell 0,53% to 91.0709 trading late Monday.

A stronger dollar makes oil cheaper for holders of other currencies. However, in India, the world's 3rd largest oil importer and customer, corona cases have increased, reducing confidence in a lasting recovery in global demand.

Brent Oil Prices Rise

“If the U.S. shortfall is broad-based today, the energy complex could make up a large amount of the improvements it made last week,” said Jim Ritterbusch, president of Ritterbusch and Associates.

“Special terror for the always strong oil prices is the possibility of a large number of corona cases. There is a renewed rise in cases across much of Asia which could provide a repeat order on the recent rebound in global crude oil demand.”

“India recorded a record increase in infections, bringing the total number of cases to more than 1 million, making India the second most affected country after the US with more than 15 million infections reported. Deaths due to Covid-2 in India increased the record number from 31 to almost 19.

The capital region of Delhi ordered a 6-day lockdown and has joined around 13 other states across India that have decided to impose restrictions, curfews or lockdowns in their cities.

“While some of the new measures may not be as stringent as in March 2020, when demand for petrol and diesel in the country fell by almost 60%, they will continue to weigh on fuel consumption in transport,” JBC said.

The price of Brent oil rose to USD 70 per barrel. Saudi Arabia's crude oil exports fell to their lowest level in 8 months in February, the Joint Organization Data Initiative ( JODY ) announced on Monday (19 April 2021) when the world's largest oil exporter voluntarily ordered production to provide support for crude oil prices.

JP Morgan now predicts Brent oil prices will reach $70 in May, compared with its initial September prediction, the bank explained in a recent statement. They continue to expect to close at a similar level around $74 this year.

Conclusion

Brent crude for June delivery rose 28 cents, or 0,4%, to $67,05 a barrel, after rising 6,0% last week. A less strong dollar makes oil cheaper for holders of other currencies.

Profits were limited by the expected impact on demand due to rising coronavirus cases in India. India recorded a record increase in infections, bringing the total number of cases to more than 1 million.

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Lovata Andrean

Hi, I'm Lovata, I'm not Ai but I am a content writer for SEO, Technology, Finance, Travel, Cooking Recipes and others. I hope this can be useful for all my friends. Thanks