Oil Price Hikes as Demand Ups

The crude oil barrel price has seen recent gains on the heels of increased demand. Brent oil surpassed US$70 a barrel, its highest mark in over two years. Meanwhile, the OPEC basket of crudes averaged US$67.52 per barrel on May 16. Likewise, West Texas Intermediate crude for June delivery climbed 90 cents to US$66.27 a barrel on the New York Mercantile Exchange, its best showing since Apr 2019.

The rise in oil prices is attributed to higher demand in the US and Europe and dwindling stockpiles along with optimism that economies are moving toward a fuller recovery as the Covid pandemic is showing signs of containment in some regions.