Title: Oil rallies on weaker dollar

Jun 21, 2021 05:03 PM ET

By: AnalysisWatch

Oil costs soared on Monday, gaining on a pause in talks to quit U.S. sanctions on Iranian crude, and because the greenback retreated from two-month highs.

Brent crude for August gained $1.39, or 1.9% to settle at $74.90 a barrel. U.S. West Texas Intermediate (WTI) crude for July gained $2.02, or 2.8%, to quit at $73.66.

Both benchmarks have risen for the beyond 4 weeks on optimism over the tempo of world COVID-19 vaccinations and anticipated pick-up in summer time season travel. The rebound has driven up spot charges for crude in Asia and Europe to multi-month highs.

Bank of America (NYSE: BAC) stated that Brent crude became probable to average $68 a barrel this 12 months however may want to hit one hundred dollars subsequent 12 months on unleashed pent-up call for an extra personal vehicle usage.

Oil became boosted via way of means of a weaker U.S. greenback that can ship speculative traders into greenback-denominated belongings like commodities.

Additionally, oil costs have drawn help from forecasts of restrained boom in U.S. oil output, giving the Organization of the Petroleum Exporting Countries extra energy to manipulate the marketplace the brief time period earlier than a probably robust upward push in shale oil output in 2022.