Oil kicks off week with gains on demand optimism

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Oil futures kicked off the week with more gains, boosted by optimism over reviving global demand as the recovery from the COVID-19 pandemic continues.

West Texas Intermediate crude for July delivery
CL00,
+0.61%

CLN21,
+0.61%
rose 33 cents, or 0.5%, to $71.24 a barrel on the New York Mercantile Exchange. August Brent crude
BRN00,
+0.66%

BRNQ21,
+0.66%,
the global benchmark, gained 43 cents, or 0.6%, to trade at $73.12 a barrel on ICE Futures Europe.

WTI was trading at the highest price for a most actively traded contract since October 2018, according to FactSet, while Brent changed hands at its highest level since April 2019.

“Good sentiment on the financial markets and the optimistic demand outlook indicated by leading energy agencies are contributing to the upswing,” said Eugen Weinberg, analyst at Commerzbank, in a note.

The International Energy Agency helped buoy sentiment at the end of last week. It’s monthly report on Friday projected demand to rise in 2021 before growing at a faster rate next year, reaching 100.6 million barrels a day by the end of 2022.

Stock-index futures pointed to a mostly higher start for U.S. equities Monday as investors prepared for this week’s meeting of Federal Reserve policy makers, which will conclude on Wednesday.

Read: What the market wants to hear from Powell about inflation at the coming Fed meeting

Investors will be looking for clarity from policy makers on their views on rising inflation pressures and the timing of any effort to begin reining in the Fed’s bond-buying program.



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