Oil jumps to 7-week high on demand hopes in the US and Europe

Oil prices rose on Tuesday, 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.

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.