Oil climbs as demand optimism overshadows India worries

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Oil prices climbed on Monday as optimism about a strong rebound in fuel demand in developed countries and China in the second half of the year overshadowed growing concerns of a full lockdown in India to curb the COVID-19 pandemic.

Brent crude futures for July gained 36 cents, or 0.5%, to $67.12 a barrel by 0045 GMT while U.S. West Texas Intermediate for June was at $63.94 a barrel, up 36 cents, or 0.6%.

Vaccinations are expected to lift global oil demand, especially during peak travel season in the third quarter, prompting analysts to increase their forecasts for Brent prices for a fifth straight month, a Reuters poll showed.

The survey of 49 participants forecast that Brent would average $64.17 a barrel in 2021, up from last month’s consensus of $63.12 and the $62.30 average for the benchmark so far this year.

“Strong demand in regions such as North America, Europe and China has brightened the overall outlook,” ANZ analysts said in a note.

Source
moneycontrol
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