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Brent crude and WTI oil prices up more than 20% year to date
The prices of Brent crude and West Texas Intermediate (WTI) oil have gained more than 20% for the year to date. Gains in the commodity have been reflecting the suggestion of increasing demand with global economic activity picking up while Covid-19 vaccine rate speeds up as well. While demand prospects for oil have improved, the supply side has seen ongoing production curbs from members of the Organization of the Petroleum Exporting Countries (OPEC) and its ally countries (OPEC+).
Key supply and demand side drivers for the oil price
The future of oil prices will remain subject to these catalysts going forward, namely future production decisions by OPEC+ and the pace of demand growth (which will be linked to the speed of the post-Covid economic recovery).