Oil prices reached its two-month high

Economies of each countries recover and so does global oil market. On Monday, price of the black gold jumped to its highest in over two months. The price growth was supported by good news on development of a potential SARS-CoV-2 vaccine.

Oil

Brent oil futures contracts grew in more than 7% on Monday. A barrel of brent oil for July delivery increased to roughly $35. North American West Texas Intermediate was traded for almost $32, when it rose in more than 8%. Yet, only few weeks ago, oil market collapsed under anti-pandemic measures and many sectors were interrupted, and so was demand for the energy commodity.

Analysts believe that first signs of recovery of each sector are appearing on markets. Yet, it’s not very significant for now and may take some time. The fact that oil futures for July recovery strengthen signal that markets believe in even stronger recovery, which could come during summer months. To some extent, agreement of OPEC+ group begin to be affective starting from May. The working group agreed on cutting supplies in roughly 10 million barrels per day. Not so long ago, WTI oil futures were traded in negative values for the first time in history.

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