Crude oil prices rose on Thursday as data from the Energy Information Administration (EIA) revealed that U.S crude oil inventories dropped last week for the sixth straight week in response to rising global demand for crude oil.
Nigerian type of crude oil, Brent crude oil gained 94 cents or 1.3 percent to $75.56 per barrel on Thursday morning at 11.22 am Nigerian time, while the U.S. West Texas Intermediate (WTI) crude oil rose by 93 cents or 1.3 percent to $74.40 a barrel.
In June, Brent gained 8 percent to hit its highest since October 2018. WTI appreciated by 10 percent in the same month, also trading at its highest since October 2018.
Oil experts are predicting a further increase in oil prices given the growing demand for the commodity in most regions.
“In the first half of the year, the stage has been set for further improvement and for economic and oil demand growth,” said Tamas Varga, oil analyst at London brokerage PVM Oil.
OPEC and allies, known as OPEC+, will meet today, Thursday July 1st, 2021 to decide whether to increase supply next month and consider extending its overall crude oil agreement beyond April 2022, stated sources cited by Reuters.
On Wednesday, despite rising oil prices, OPEC+ warned of growing uncertainties and the risk of an oil glut in 2022.
“Given the sharp demand increase we expect for this summer, we think the group will modestly increase production. Even so, the oil market will remain undersupplied,” said UBS analyst Giovanni Staunovo, predicting that larger oil inventory declines will lift prices higher in the third quarter.
