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Oil Prices Remain Unchanged After Hitting Two-Year High

Oil prices ended mostly unchanged on June 14, after hitting their highest levels in more than two years, as growing US crude production and Britain’s delayed Covid-19 reopening decreased expectations for fuel to demand growth and tighter supplies. “We started off strong on expectations that the demand situation was building momentum as Covid-19 vaccinations were high,” said Phil Flynn, Senior Analyst at Price Futures Group in Chicago.

Brent settled at $72.86 a barrel. Earlier in the session, it reached $73.64 a barrel, its highest since April 2019. US West Texas Intermediate fell 3 cents to settle at $70.88 a barrel, after earlier touching $71.78 a barrel, its highest since October 2018. The International Energy Agency said on Friday that it expected global demand to return to pre-pandemic levels at the end of 2022, more quickly than it expected.

The IEA urged the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, to increase the outputs to meet demand. OPEC+ has been stoping production to support prices, maintaining agreed targets in May. Motor vehicle traffic is returning to pre-pandemic levels in North America and Europe, and more planes are in the air as strict lockdowns and other restrictions are being relieved.

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