Oil Reaches Seven-Week High With Demand Revival Gaining Traction - Bloomberg

Oil Reaches Seven-Week High With Demand Revival Gaining Traction - Bloomberg

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West Texas Intermediate crude for June delivery rose $1.20 to settle at $65.69 a barrel Brent for July settlement added $1.32 to $68.88 a barrel, posting the largest daily gain since April 14. The contract is at its highest in roughly seven weeks Oil climbed to the highest since the middle of March as reopening efforts and vaccination pushes from the U.S. to Europe underpin hopes for a return to normal demand in the world’s largest economies. Futures in New York gained 1.9% on Tuesday, the biggest daily jump in nearly three weeks, while gasoline futures settled at the highest since July 2018. The U.S. is setting a new target of 70% of U.S. adults receiving at least one Covid-19 vaccine shot by July 4, while British Prime Minister Boris Johnson said his country’s lockdown rules are set to be scrapped in seven weeks. That’s offsetting concerns about weaker oil consumption in parts of Asia, including key importer India, where Covid-19 remains rampant. “Gasoline inventories in the U.S. are well below where they were a year ago and we’ve taken out refinery capacity,” said Peter McNally, global head for industrials, materials and energy at Third Bridge. “We’ve seen the impact on demand as more people get vaccinated, so we’re going to get that tailwind plus seasonality coming later this month.”