The outlook for summer demand is optimistic, oil prices are close to US$70 per barrel

According to a Reuters report on May 5, as the United States and parts of Europe relax the blockade, this indicates that fuel demand in the summer is expected to increase, offsetting concerns about the increase in infection cases in India and Japan.

At 10:08 GMT, the price of Brent crude oil rose by 93 cents to US$69.

Stephen Brennock of the oil broker PVM said: "The expectation that oil prices will return to $70 a barrel is slowly becoming a reality.

At a time when oil prices are soaring, it is expected that demand will remain strong as the Western economy recovers.

At the same time, crude oil prices are also supported by the sharp drop in US inventories.

According to two market sources, the American Petroleum Institute (API) reported that crude oil inventories fell by 7.

Traders are waiting for data from the U.

In addition, the introduction of new crown pneumonia vaccines in the United States and Europe has pushed oil prices to highs in the past two months.

　　Business activities in the euro zone accelerated last month, as the euro zone's dominant service industry got rid of a new round of blockade restrictions and resumed growth.

　　This offset the impact of the decline in India's fuel demand.

　　Wang Jiajing excerpted and translated from Reuters

　　The original text is as follows:

　　Oil nears $70 as easing Western lockdowns boost summer demand outlook

　　Oil prices rose for a third day on Wednesday as easing of lockdowns in the United States and parts of Europe heralded a boost in fuel demand in summer season and offset concerns about the rise of COVID-19 infections in India and Japan.

　　Brent crude rose 93 cents, or 1.

　　Both contracts hit the highest level since mid-March in intra-day trade.

　　"A return to $70 oil is edging closer to becoming reality," said Stephen Brennock of oil broker PVM.

　　"The jump in oil prices came amid expectations of strong demand as western economies reopen.

　　Crude prices were also supported by a large fall in US inventories.

　　The American Petroleum Institute (API) industry group reported crude stockpiles fell by 7.
7 million barrels in the week ended April 30, according to two market sources.
That was more than triple the drawdown expected by analysts polled by Reuters.
Gasoline stockpiles fell by 5.
3 million barrels.

　　Traders are awaiting data from the US Energy Information Administration due at 10:30 am EDT (1430 GMT) on Wednesday to see if official data shows such a large fall.

　　"If confirmed by the EIA, that would mark the largest weekly fall in the official data since late January," Commonwealth Bank analyst Vivek Dhar said in a note.

　　The rise in oil prices to nearly two-month highs has been supported by COVID-19 vaccine rollouts in the United States and Europe.

　　Euro zone business activity accelerated last month as the bloc's dominant services industry shrugged off renewed lockdowns and returned to growth.

　　"The partial lifting of mobility restrictions, the expectation that tourism will return in the near future, and the lure of the psychologically important $70 mark are all likely to have contributed to the price rise," Commerzbank analyst Eugen Weinberg said.

　　This has offset a drop in fuel demand in India, the world's third-largest oil consumer, which is battling a surge in COVID-19 infections.

　　"However, if we were to eventually see a national lockdown imposed, this would likely hit sentiment," ING Economics analysts said of the situation in India.