InvestorQ : What are the implications of oil breaching $70/bbl once again in the Brent market?
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What are the implications of oil breaching $70/bbl once again in the Brent market?

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4 weeks ago
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Brent Crude oil finally breached the $70/bbl on 19 May and went above although it has been testing these levels for some time now. The surge in crude prices can be largely attributed to the massive reopening of the European and US economies. Both, the US and Europe are planning to bring back economic activity to normal levels and that bodes well for oil prices. However, large parts of Asia continue to reel under the COVID resurgence.

However, the revival in the US and Europe is expected to offset the impact of spreading Coronavirus cases in Asia. This revival bodes well for a spike in gasoline demand. Even the US based WTI crude was quoting higher at $66.72/bbl. There is a catch here. If Iran is able to fully start oil exports, oil prices may taper once again on the back of oversupply.

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