On Tuesday 9th November 2021, oil price rose towards $84 per barrel, The increase occurred as the United States lifted travel ban along with economic recoveries experienced by major economies which has raised demand outlook with the supply of oil still ridged.
Recall Joe Biden approved an infrastructure bill and china’s export figures improved these are major macroeconomic variables that drove global economic recovery, Thus increasing demand for crude.
Brent Crude rose or 0.6%, to $83.93 a barrel by 09:20 GMT. U.S. oil advanced 0.5%, to $82.34.
Oil broker Tamas Varga stated “With the re-opening of U.S. borders for vaccinated travellers, jet fuel demand ought to receive a healthy boost,” “The passage of the $1 trillion U.S. infrastructure bill in Congress is also expected to provide additional help.”
Generally, Crude oil rose an estimated 60% in the year 2021, reaching a record high of $86.70. This statistics were majorly as a result of supply constraint initiated by OPEC+, The oil cartel decided to gradually increase supply 400,000 barrels per day.
During the last meeting, Organization of the Petroleum Exporting Countries and its allies stuck to its existing production rate and rejected the U.S. plea to accelerate supply to relieve demand pressure.
However, Joe Biden may take actions as early as this week to address rising gasoline prices, This was revealed on Monday by the U.S. Energy Secretary Jennifer Granholm.