FX.co ★ Oil enjoys robust demand with prices hitting records highs

Oil producers must be quite satisfied with the latest news. Summarizing the results of the first half-year, experts noted a breakneck pace of growth in oil prices. The commodity appreciated by over 44-52% which is the fastest increase in the past 12 years.

A growing number of experts predict that oil prices will skyrocket above the level of $100 per barrel in the near future. For some countries, oil exports are the main source of income, so such forecasts are definitely encouraging for them. It is highly possible that the first half of 2021 will mark the beginning of the commodities supercycle. The current robust rise in prices is likely to be connected with the economic recovery following the coronavirus pandemic.

Some experts suggest that fears over the disruption of supplies from Venezuela and Iran in addition to the economic upturn also fuel a rise in prices. Another positive factor is an increase in the global demand for energy. These drivers are more than enough to push oil prices to 90 dollars per barrel as the first target, and then a rise to 100 dollars can be possible.

Russia is sure to benefit from the bullish dynamics of oil. Official representative of the Humanity social project Andrey Loboda said that amid a rise in oil prices, the Russian ruble has every chance of strengthening to the level of 68 against the US dollar by the beginning of autumn. So far, the commodity has advanced above the levels seen before the pandemic.