Stronger Demand Is Behind the Oil Price’s Rebound
Workers use a bucket to collect a sample of crude oil at a multiple well platform in an oilfield in Russia. (Photographer: Andrey Rudakov/Bloomberg)

Stronger Demand Is Behind the Oil Price’s Rebound

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Stronger Demand Is Behind the Oil Price’s Rebound

The Brent crude price has bounced from about $40 per barrel in mid-2020 to more than $50, with stronger demand behind the rebound as progress on Covid-19 vaccinations promises a return to normality. Bloomberg Economics splits the change in price into demand and supply drivers and estimate that a demand pick-up accounted for $25 of the gain over the last six months. Higher supply has weighed on prices, though, subtracting $15 per barrel.

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