The price of crude oil has been on a rollercoaster ride in 2021. After hitting a low of $45.68 per barrel in February, West Texas Intermediate (WTI) crude oil prices have been steadily rebounding. As of April 2021, WTI crude oil prices have risen to $59.60 per barrel. This rebound is being driven by a combination of factors, including increased demand, OPEC+ production cuts, and geopolitical tensions in the Middle East.
Demand for crude oil has been increasing as economies around the world begin to reopen following the COVID-19 pandemic. As people start to travel and consume more fuel, demand for crude oil is expected to continue to rise. This increased demand has helped to push prices up from their 2021 lows.
In addition to increased demand, OPEC+ production cuts have also had an impact on crude oil prices. OPEC+ is an alliance between the Organization of the Petroleum Exporting Countries (OPEC) and other non-OPEC countries such as Russia. The alliance has agreed to reduce production by 1.2 million barrels per day in order to support prices. This agreement has helped to stabilize prices and prevent them from falling further.
Finally, geopolitical tensions in the Middle East have also had an impact on crude oil prices. Tensions between Iran and the United States have been escalating, and this has caused some uncertainty in the market. If tensions continue to rise, it could lead to supply disruptions and further price increases.
Overall, WTI crude oil prices have been steadily rebounding from their 2021 lows due to a combination of increased demand, OPEC+ production cuts, and geopolitical tensions in the Middle East. As the global economy continues to recover from the COVID-19 pandemic, demand for crude oil is expected to remain strong and prices are likely to continue to rise.
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