Fundamental analysis
09 June, 2021
Oil prices rose for a second day on Wednesday on signs of strong fuel demand in Europe, while the prospect of a near-term return of Iranian oil supply faded as the U.S. secretary of state said sanctions against Tehran were unlikely to be lifted. The market is being boosted by a solid outlook for fuel demand growth as travel curbs are lifted in Europe with more people getting vaccinated. On Tuesday, the U.S. Energy Information Administration forecast fuel consumption growth this year in the United States, the world's biggest oil user, would be 1.49 million barrels per day (bpd), up from a previous forecast of 1.39 million bpd. In another positive sign, industry data showed U.S. crude oil inventories fell last week, in line with analysts' expectations, according to a Reuters poll. The American Petroleum Institute reported crude stocks fell by 2.1 million barrels in the week ended June 4, two market sources said, citing the data.
