Crude oil prices continue to rise

According to foreign media reports, data show that on June 14, the price of New York light crude oil futures exceeded US$71 per barrel, and the price of London Brent crude oil futures exceeded US$73 per barrel, both hitting a two-year high
.

Since June, oil prices in New York have risen by 6.

At the same time, according to data from the fuel tracking website GasBuddy, the average gasoline price in the United States has also risen for eight consecutive weeks, reaching $3.

07 per gallon on June 14

The analysis believes that there are many reasons for the continuous rise in international oil prices in the recent period
.

In terms of demand, the International Energy Agency is optimistic about the prospects for future crude oil demand and stated that oil demand will rebound strongly in the second half of 2021.
It is expected that the energy demand for the whole year will increase by 4.
6%, and it may return to the level before 2019 in the next year

As more people resume travel and tourism after the epidemic, driving activities in the United States have increased significantly, and the demand for gasoline in the summer has risen sharply, and the peak has begun
.

In addition, with the warming of the weather, the advancement of vaccination and the easing of blockade measures, the demand for aviation fuel is also picking up

Goldman Sachs Group analysts recently stated that the price of Brent crude oil will rise to more than US$80 this summer
.

Analysts from financial institutions such as ANZ, Bank of America and Merrill Lynch have similar views on oil prices .

On the other hand, the global market is enthusiastic about new energy, and fund managers have invested trillions of dollars in wind, solar and other renewable energy projects, while spending on oil projects has dropped significantly
.

Investors believe that the market’s preference for green energy will curb spending on oil extraction, thereby driving a shortage of oil supply and rising fuel prices

　　According to data from research firm Wood Mackenzie, spending on oil extraction fell to about $330 billion last year, less than half of what it was in 2014
.

If oil demand continues to rise and investment expenditures for oil continue to be restricted, then the supply will remain in a predicament of shortage

　　The analysis pointed out that the market is more sensitive to the fundamental factors of supply and demand, which may lead to further intensification of oil price fluctuations
.

Negotiations on the Iran nuclear agreement are still continuing, which will continue to put pressure on oil prices and will continue to curb the upside of oil prices in the short term

　　Transfer from: Economic Information Daily