Brent oil increased by more than 3% during the week ending May 28 on optimistic forecasts of a global oil demand recovery and a more-than-expected fall in US crude inventories.
International benchmark Brent crude traded at $69.52 at 1122 GMT on Friday, posting a 3.3% increase from Monday when it registered $67.30 per barrel at 0741 GMT.
American benchmark West Texas Intermediate (WTI) traded at $67.25 at the same time on Friday, rising over 4.3% relative to $64.46 a barrel on Monday.
Oil prices started the week on a positive note as a potential hurdle in negotiations between Iran and the US on reviving the 2015 nuclear deal and lifting Iranian oil export sanctions is postponing extra volumes of Iranian crude hitting a pandemic-hit market.
Investor expectations over the return of extra barrels of Iranian crude to markets heightened investor caution, which pressured prices by midweek.
However, prices continue their upward trend as many analysts agree that “the expected global demand recovery this summer seems strong enough to absorb the effect.”
Optimistic forecasts from the Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) in their latest oil market reports published this week also pushed prices higher.
Taking into account US transportation fuel data and the acceleration in vaccination programs in many regions, OPEC and the IEA foresee that oil demand will surge by 6% in 2021, particularly in the second half of the year.
The more-than-expected fall in US crude stocks last week also boosted prices, signaling a crude demand rebound in the US, the world's largest oil consumer.
By Ebru Sengul Cevrioglu