The United States lifts travel restrictions, travelers line up for flights. JPMorgan Chase says oil demand is almost back to pre-pandemic levels. Biden could announce actions on oil this week-energy secretary. Coming soon: API supply report, 2030 GMT
LONDON Nov 9 (Reuters) – Oil rose to $ 84 a barrel on Tuesday, gaining for a third session as lifting travel restrictions in the United States and more signs of global post-pandemic recovery lifted demand outlook, while supply remained tight.
On Monday, travelers returned to the United States, while the approval of US President Joe Biden’s infrastructure bill and better-than-expected Chinese exports helped draw a picture of a global economy in recovery. Read more
Brent crude rose 50 cents, or 0.6%, to $ 83.93 a barrel at 9,020 GMT, after gaining 0.8% on Monday. U.S. oil advanced 41 cents, or 0.5 percent, to $ 82.34, also after a 0.8 percent increase the day before.
“With the reopening of U.S. borders for vaccinated travelers, the demand for aircraft fuel should receive a healthy boost …,” said Tamas Varga, of the PVM oil corridor.
“The approval of the $ 1 trillion US infrastructure bill in Congress is also expected to provide additional aid.”
The price of Brent has risen more than 60% this year to $ 86.70, a three-year high on Oct. 25, backed by the Organization of the Petroleum Exporting Countries’ supply constraint. and its allies, known as OPEC +, and demand recovery.
At a meeting last week, OPEC + decided to stay at its current pace of easing record production cuts and rejecting U.S. requests to pump more, helping keep supply short-term according to some analysts .
JPMorgan Chase said global oil demand in November was almost back to pre-pandemic levels of 100 million barrels per day (bpd), following last year’s collapse.
Biden, however, may take action this week to address rising gasoline prices, U.S. Energy Secretary Jennifer Granholm said Monday. Read more
Despite a tight global market, U.S. crude oil stocks are expected to have risen for the third week in a row, possibly helping to limit new price gains.
The first of two supply reports this week, from the American Petroleum Institute industrial group, is due to be submitted at 2030 GMT.
Additional report by Aaron Sheldrick; Edited by Susan Fenton
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