An increase in oil prices this year by 25%

Oil prices have increased by 25% since the beginning of this year, with the support of expanding vaccination operations and increasing demand after the opening of economic activity. The production restrictions imposed by the «OPEC +» alliance and the independent efforts made by Saudi Arabia have succeeded in pushing oil prices this year to relatively comfortable ranges for companies and countries. The International Energy Agency expected global oil demand to grow by 5.5 million barrels per day during 2021, after it shrank by 8.7 million barrels per day in 2020, noting in its estimates issued in March that consumption during the first quarter of this year was higher than expected Due to cold weather in different parts of the world. Late last month, the OPEC + alliance agreed to stabilize the production policy without change, after an agreement at the beginning of the month to increase production by a total amount of about 1.1 million barrels per day, during the period between May and July. Oil prices concluded last April’s trading month, at $ 66.76 per barrel of benchmark Brent crude, and $ 63.58 per barrel for US NYMEX crude, to record monthly gains of more than 7% each. This was mainly supported by optimism about a recovery in global demand in light of vaccination campaigns, and oil prices rose by more than 25% this year, and this rise was an additional gift to the market, says “Regina Mayor”, chief global energy analyst at “KPMG”, that the rise Oil is kind of surprising, and she wasn’t expecting that kind of rally early in the year.

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