On Tuesday, hopes for a recovery in demand for oil and growth in the global economy outweighed investor concerns about an increase in the COVID-19 cases in India.
Here, the price of July futures for Brent oil mixture on the London ICE Futures stock exchange reached the $ 67.56 mark. The contracts showed a similar mark during the closing of the trading session on Monday, rising by 1.2%.
The cost of June WTI crude oil futures on the New York Mercantile Exchange NYMEX reached $ 64.51 per barrel, overcoming the previous session's close by 0.03%. A day earlier, the price of contracts rose by 1.4%, reporting up to $ 64.49 per barrel.
Previously, the European Commission made a proposal for EU member states to relax the existing restrictions on entry into the European Union amid the expanding vaccination campaigns and stabilizing the epidemiological situation in the world. The proposal announced by the European Commission may come into force on Wednesday.
Experts believe that such a move will significantly increase the number of tourist trips to coastal regions of Europe, which in turn, will increase the global demand for oil.
As for the situation with the spread of COVID-19 in India, it has noticeably declined recently. Today, the country ranks second in the number of infected in the world after the United States. On Monday, 368,147 new diseases were registered, and on the weekend, there were 400,000 cases of infection per day, which became a new world anti-record.
According to recent expert analysis, Indian demand for gasoline and distillates has almost completely offset all the gains in recovery from the pandemic. Today, the current condition in the country seriously threatens the recovery of global demand, since India is the third largest importer of crude oil in the world.
Recently, many states have decided to restrict transport links with India in order to reduce the risk of their citizens contracting the Indian strain of coronavirus.
Nevertheless, the oil market continues to hold quite confidently despite many negative factors. At the same time, analysts insist that global oil demand in the short term will be able to continue to increase. As a proof, they cite the continuous efforts of OPEC+ to ease the previously adopted restrictions on the production of black gold. So, the media published a statement by the Iraqi Oil Minister that OPEC+ will continue to keep oil prices at the level of normal average values.
Experts believe that such a comment from a representative of OPEC+ is proof of the alliance's confidence in the future increase in energy demand, despite the permanent increase in cases of COVID-19 diseases in India.
On another note, investors continue to monitor developments in Iran, which hopes to reach an agreement with the United States on the partial lifting of sanctions in the near future and is already increasing production and export of black gold.
However, White House officials denied news from Iranian media about Washington's readiness to lift economic sanctions against Iran. In addition, the American side added that the opponents still face serious and lengthy negotiations.
Analysts are confident that Iran, which is not bound by the terms of the OPEC + production limitation agreement, does not have the opportunity to minimize US sanctions.
If Iranian oil exports (about 2.5 million barrels per day) return to the market, oil quotes will inevitably come under negative pressure.