Oil soars to record highs as travel season beginsEuropost
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.