Oil market hits annual high

The oil market continues its bullish rally, reaching $59.70 per barrel. The last time the quotes were at similar levels was in January 2020.

The main support for oil prices is provided by the successful implementation of the terms of the deal to reduce oil production by OPEC + countries. On Wednesday, a meeting of the OPEC + Monitoring Committee took place, at which it was noted that the agreement was fulfilled by 101%. On the side of buyers are also data on changes in US oil reserves from the EIA - stocks of raw materials in the country continue to decline for the third week in a row.

Further driving up the oil market are signs that the coronavirus pandemic is on the wane as infections, hospitalizations and deaths have been steadily declining globally over the past two or three weeks.

At the same time, market participants ignored the annual report of the US Department of Energy with pessimistic forecasts for a recovery in demand. The EIA noted that aggregate energy consumption in the United States could return to 2019 levels only by 2029, and if the pace of economic recovery remains low, then even by 2050.