by Bloomberg
|Wednesday, June 02, 2021
All signs from this past Memorial Day weekend reaffirm the oil market s bet that Americans will be out traveling in force this summer.
(Bloomberg) From bustling U.S. airports to surging demand for gasoline, all signs from this past Memorial Day weekend reaffirm the oil market’s bet that Americans will be out traveling in force this summer.
A peek at travel patterns in the world’s largest oil-consuming country over the past few days indicates some of the heaviest driving and flying since Covid-19 decimated consumption last spring. That’s good news for Saudi Arabia and its OPEC+ allies as they gradually bring back output, counting on a rapidly tightening crude market.
From bustling U.S. airports to surging demand for gasoline, all signs from this past Memorial Day weekend reaffirm the oil market’s bet that Americans will be out traveling in force this summer.
Oil trades near $70 a barrel on improving demand outlook
Oil prices firmed on Monday, with Brent trading near $70 a barrel, underpinned by the bright outlook for fuel demand growth in the next quarter, while investors looked ahead to the OPEC+ meeting this week to see how producers will respond.
Brent crude futures rose 69 cents, or 1%, to $69.41 a barrel by 0955 GMT, after reaching a session high of $69.82. U.S. West Texas Intermediate crude was at $67 a barrel, up 68 cents, or 1%.
U.S. and UK markets are closed on Monday due to public holidays.
Both contracts are on track for a second monthly gain as analysts expect oil demand growth to outstrip supply despite the possible return of Iranian crude and condensate exports.
Defunct Chicago investment adviser LJM Partners Ltd. was hit Thursday with enforcement actions from federal commodities and securities regulators alleging the enterprise mismanaged $1 billion in assets by misleading investors about its short options trading strategy and risk management practices.