Oil rises for fifth week as focus turns to upcoming Opec+ meet

Bloomberg

Oil posted its fifth straight weekly gain, the longest winning streak since December, as demand recovers and supplies continue tighten in the US and China.
Futures in New York rise 3.4% this week to the highest level since October 2018. Demand continues to rebound while the market expects output will only get a modest increase from the Opec+ alliance, which meets next week to discuss supply policy.
“It’s very unlikely, at least from my perspective, that they are going to go flood the market with crude, open up all the spigots and collapse the price,” said Bart Melek, head of commodity strategy at TD Securities.
Stockpiles are draining rapidly as fuel consumption rebounds in key regions including the US and Europe. At the same time, the prospect of an imminent surge of Iranian oil is diminishing as talks to revive a nuclear deal drag on. The increasingly bullish picture is helping to fan speculation that Brent may eventually return to $100 a barrel.
JPMorgan Chase & Co. increased an estimate for 2021 global demand for crude by 200,000 barrels per day, with the majority of that gain coming from China. US demand would stay strong until September, the report said.
Gasoline futures fall after the Supreme Court announced that the Environmental Protection Agency has wide latitude to exempt refineries from federal mandates that they mix renewable fuels into gasoline and diesel. The decision marks a victory for oil companies that have sought a break from the requirements, arguing that costs have skyrocketed in the recent months.