By Teddy Nwanunobi
For the first time in two years, Brent oil price, on Tuesday evening, crossed over $71 per barrel.
Valuechain reports that the 17th Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC Ministerial Meeting (ONOMM) held on Tuesday, June 1 via videoconference.
Amongst other things, the meeting noted the ongoing strengthening of market fundamentals, with oil demand showing clear signs of improvement, and the Organisation for Economic Co-operation and Development (OECD) stocks falling, as the economic recovery continued in most parts of the world, as vaccination programmes accelerated.
Earlier, on Tuesday, Brent oil had advanced $70 per barrel, following the OPEC and its alliance (OPEC+) forecast of a tightening global market ahead of the production policy meeting.
Futures in London had risen as much as 1.5 per cent, after posting a second straight monthly gain.
The oil glut built up during the Coronavirus (COVID-19) Pandemic has almost gone and stockpiles will slide rapidly in the second half of the year, according to an assessment of the market from an OPEC+ committee.
Oil prices are heavily influenced by traders who bid on oil futures contracts in the commodities market based on their perceptions of the future supply and demand for oil.
Futures contracts, and oil derivatives are traded daily, which act to influence the price of oil.
This causes the price of oil to change daily, because it all depends on how trading goes on each day.