Oil Prices Grow On The Prospects For Growth In Demand And Economic Recovery
The world oil prices continue to rise on the outlook for increased demand for raw materials and economic recovery.
The cost of August futures for Brent crude oil is growing by 0.36% to USD 75.45 per barrel. The price of August futures for WTI is growing by 0.30%.
The oil market shows positive dynamics. The investors believe that with the gradual lifting of travel restrictions, it will boost fuel demand which means a gradual recovery from the coronavirus pandemic.
However, traders are awaiting a seventh round of the US talks with Iran to reopen the nuclear deal. The renewed agreement may lead to the lifting of restrictive measures against Iran, which will entail an inflow of oil to the world market.
Rystad Energy analysts told the Wall Street Journal that Iranian oil will not return to the market until the deal is completed. Before influencing prices, traders will look for official confirmation.
The investors are also waiting for the OPEC + meeting. During the meeting, the alliance should determine the further terms of the agreement. An additional increase in oil production is expected in August. According to Bank of America, oil may be USD 100 a barrel by 2022. However, in 2023 the prices may fall to USD 65 as the US shale companies react to the rise in oil prices.