Oil hits two-year high on OPEC+ discipline, demand hopes

 

By Devika Krishna Kumar, Reuters

via StreetInsider.com - Jun 3, 2021

 

NEW YORK (Reuters) -Oil extended gains on Friday, topping $72 a barrel for the first time since 2019, as OPEC+ supply discipline and recovering demand countered concerns about patchy COVID-19 vaccination rollout around the globe.

 

The Organization of the Petroleum Exporting Countries and allies on Tuesday said they would stick to agreed supply restraints. A weekly supply report on Thursday showed U.S. crude inventories dropped more than expected last week. [EIA/S]

 

Oil extended gains after U.S. jobs figures showed nonfarm payrolls increased by 559,000 jobs last month. The U.S. dollar weakened after the report, making oil cheaper for holders of other currencies and lending support to oil prices.

 

Brent crude was up 29 cents, or 0.4%, at $71.60 a barrel by 11:12 a.m. (1512 GMT), after earlier touching $72.17, its highest since May 2019.

 

U.S. West Texas Intermediate crude was up 51 cents, or 0.7%, at $69.32, and earlier hit $69.76, its highest since October 2018.

 

"After much dilly-dallying, Brent appears to have found a new home above $70," said Stephen Brennock of oil broker PVM...

 

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