On June 30, the oil prices went high compared to the previous day after an industry report portrayed that US crude stockpiles fell. This increased the concerns of investors and overriding traders about the transportation curbs in certain countries due to the Covid-19 upsurge of cases. Furthermore, Brent Crude was at 42 cents or $75.16 a barrel on June 29. On the other hand, the US crude was up to 53 cents or $ 73.51 a barrel and rose 0.1 percent from the previous session.

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While the highly infectious Delta variant of the coronavirus is prompting new restrictions or lockdowns in several countries, hopes of recovery in fuel demand remain intact. On June 30, Brent is proceeding for another monthly gain which means that the contract rose for six out of the earlier seven months. The crude of the US has traded similarly since November 2020.

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Hopes for a Broad Recovery

The director of energy futures, Bob Yawger, said that the Futures have been continuing trading on a one-way ripper towards the upside since the headline declared the vaccination of Covid-19 had been developed. As a result, US crude stocks were decreased by 8.2 million barrels, according to the data showed by American Petroleum Institute. Still, the gasoline inventories increased by 2.4 million barrels, and the distillate stocks rose by 428,000 barrels, said the sources.

However, hopes for having a broad recovery received a major boost from the Secretary-General of OPEC Mohammad Barkindo, who said that demand is anticipated to increase by 6 million barrels per day or BPD in 2021. Along with that, around 5 million barrels per day demand will be in the second of 2021.

He laid out the important forecast in the meeting, including the Joint Technical Committee of OPEC+. The OPEC+ is an alliance made of all OPEC members comprising Russia and several other producers. This meeting will decide the production policy of the group as it proceeds to release a few of the barrels that have been withheld from the markets. The groups withheld it to support the prices after the demand evaporation in the year 2020.

The ING Economics said they are continuing to believe that the group will agree on an increase of supply of around 500,000 barrels per day. It also said that there might be a potential of some surprises, with few members believing that the present levels of prices justify a more significant rise.