WTI prints fresh cycle highs through $72
|- Oil prices are firm on Tuesday ahead f the much anticipated Federal Reserve.
- The markets are seeing inflation in data and forecasting higher price sin oil for 2021.
The price of a barrel of oil on Thursday was moving to fresh multi-year highs.
Oil prices rose nearly 2% to their highest in more than two years backed by expectations of future demand.
A call from Vitol Chief Executive Russell Hardy rallied the bulls, calling for oil prices to keep above $70 a barrel with demand expected to return to pre-pandemic levels in the second half of 2022.
The CEO of the firm sees the price of oil staying between $70 and $80 for the duration of the rest of this year.
Hardy was explaining that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) keep supply discipline, even as Iran's exports may resume if the United States rejoins a nuclear agreement with Tehran.
"We have had that stock draws for a couple months, the market is heading in the right direction," Hardy said in an interview with the FT Commodities Global Summit.
Meanwhile, analysts polled by Reuters are looking for crude stocks in the US to sink for a fourth week in a row. Industry data is due at 4:30 p.m. Tuesday, followed by official figures on Wednesday morning.
All eyes on the Fed
Additionally, data on Tuesday showed that Retail Sales dropped more than expected last month but large upward revisions to the March and April data provided some offset.
Moreover, the Producer Price Index data also indicated a stronger-than-expected uptick in inflation as the covid vaccinations enable the US population to spend their way out of the COVID-19 restrictions.
This comes ahead of the two-day US Federal Reserve meeting that started on Tuesday.
Traders are on the lookout for the debate about how and when to start tapering which could give some life that greenback and stall the black gold's advance in the meantime.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.