Oil hits 7-week high ahead of US inventories data

Oil prices continued to rise as the US market opened on Thursday, to head for the second straight daily gain, and hit a 7-week high, thanks to hopes of improved demand in the US and Europe as the coronavirus infections rate slowed down after a broad use of vaccination, and ahead of the US crude inventories data by the American Petroleum Institute.

US crude rose 2.1% to its highest level since March 15 at $65.82 a barrel, after opening at $64.47, and hit a high at $63.67, and Brent crude rose 1.9% to the highest since March 17 at $69.02 a barrel, after opening at $67.72, and hit a high of $67.38.

US crude gained 1.6% yesterday, and Brent crude futures rose 1.5% and posted the fourth daily gain in 5 days, as most dollar-denominated commodities rose.

as the coronavirus infections rate slowed down during the recent wave, after a broad use of vaccination in most US states, officials in the states of New York, New Jersey and Connecticut are moving to ease the lockdown restrictions.

The European Union is also moving to ease the restrictions, and will open to more foreign visitors who are vaccinated.

This easing of restrictions while allowing travel for summer holidays, and increased mobility in and between major cities, will improve fuel consumption and global demand.

The American Petroleum Institute will release its preliminary report on the US crude inventories, amid the US Energy Information Administration will release the official data on Wednesday.