Oil prices approached $ 70 a barrel, supported by cuts made by major crude producers in restricting supplies, and optimism about a recovery in demand in the second half of this year. Investors are pouring money into commodities like oil thanks to expectations of a recovery in demand in the second half of the year as the global economy grows, while a wider distribution of COVID-19 vaccines allows more people to travel this summer. OPEC said yesterday that the recovery in oil demand will be concentrated in the second half of the year.
The United States, the largest consumer of oil in the world, saw a large withdrawal of gasoline stocks last week, after a winter storm in Texas caused disruption in the production of refineries.
JP Morgan analysts said in a weekly note that the continuation of oil prices at high levels is expected to push US producers to increase production.
The bank now expects that US production will reach an average of 11.78 million barrels per day in (December) 2021, an annual increase of 710 thousand barrels per day, while the amount for the whole year will reach an average of 11.36 million barrels per day, compared to 11.32 million barrels per day in 2020.