Oil soars to record highs as travel season begins

Photo: AP

Oil prices surged on international markets as tourist season reopened and pushed higher demand for fuels, Reuters reported. The robust climbing of prices easily topped one-month highs with potential to go further. Air and car transport in Europe and North America were the main factors behind the rising demand. Fast vaccination roll-outs in industrial countries further boosted the demand fro energy sources.

Brent crude was soared to more than $73 per barrel on Monday. Motor vehicle traffic is returning to pre-pandemic levels in North America and much of Europe, and more planes are in the air as anti-coronavirus lockdowns and other restrictions are being eased, driving three weeks of increases for the oil benchmarks.

The Organization of the Petroleum Exporting Countries (OPEC) and allies, known as OPEC+, need to increase output to meet recovering demand, the International Energy Agency (IEA) said in its monthly report. The OPEC+ group has been restraining production to support prices after the pandemic wiped out demand in 2020, maintaining strong compliance with agreed targets in May. “OPEC+ needs to open the taps to keep the world oil markets adequately supplied," the IEA said. Goldman Sachs said last week it expects Brent to rise to $80 per barrel this summer.

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