Author of the article: Ben Sharples
Publishing date: Jun 06, 2021  â¢Â 2 hours ago  â¢Â 1 minute read  â¢Â
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(Bloomberg) â Oil in New York hit $70 a barrel for the first time since October 2018 as upbeat comments on the market from major trader Vitol Group added to optimism over the global demand recovery.
Futures climbed as much as 0.6% during early trading on Monday after posting a second straight weekly gain. OPEC+ appears in control of crude prices, with U.S. production lagging pre-pandemic levels, Mike Muller, Vitolâs head of Asia, said at a conference on Sunday. The alliance is returning supply after output cuts helped to tighten the market. Brent oil traded above $72.
Indonesia, currently the No. 1 source of coal for Asia’s largest economy, has been hit by heavy rainfall. That’s seen total shipments drop about 15% below pre-virus levels, Morgan Stanley said in a note this week. Indonesian coal futures on the Singapore Exchange also rose to an all-time high in May.
The Cerrejon mine in Colombia has been hit by blockades of a rail line and port last month. The company said May 30 that it would be gradually reopening.
Even with China’s import ban, Australian coal futures are surging thanks to buying from Japan, South Korea and Taiwan. Spot prices for high-quality thermal coal in the port of Newcastle rose to the highest since 2011 on Monday.