Investors Bullish on Oil Amid Positive Demand Outlook

16 June 2021

    Oil prices rose on Wednesday, with Brent gaining for a fifth day in a row as as falling stockpiles and a recovery in demand are cheering the bulls on.


    US oil inventories dropped by 8.5 million barrels in the week ended June 11, according to two market sources. Crude stocks were expected to have fallen for a fourth week in a row, dropping by about 3.3 million barrels last week, according to analysts polled by Reuters. Official government data is due on Wednesday.


    Executives from major oil traders said on Tuesday they expected prices to remain above $70 a barrel and demand to return to pre-pandemic levels in the second half of 2022.


    "Even non-energy traders are placing bets that oil prices will continue to rise. Everyone is turning overly bullish with crude prices. The crude demand outlook is very robust as recoveries across the US, Europe and Asia, will have demand return to pre-COVID levels in the second half of next year”, said Edward Moya - senior market analyst at OANDA.


    Vitol Chief Executive Russell Hardy said oil is likely to trade in a range between $70 and $80 a barrel for the rest of this year on the expectation that OPEC+ will keep up its output restraints. According to him, even the return of Iranian exports if the US rejoins a nuclear agreement and lifts sanctions on Tehran is unlikely to change the bullish picture.


    Brent was seen up 0.9%, at $74.68 a barrel by 02.00 GMT, having risen 1.6% on Tuesday.

    Crude, in turn, rose 0.9%, to $72.78 a barrel, after gaining 1.7% in the previous session.

    *The products advertised are only available to clients under Fondex Limited (SDL No: SD037). Trading CFDs involves significant risk of loss.


Cookies on Fondex

The Fondex website uses cookies to optimise user experience.

These cookies fall under the following categories: essential, functional and marketing cookies. Marketing cookies may also include third-party cookies.

Manage Preferences

You can customize your selection of which cookies you want to accept.

  • Essential

    These cookies are necessary for the website to function correctly and cannot be switched off.

  • Functional

    Functional cookies allow the website to remember users' preferences and the choices you make on the website such as username, region, and language.

  • Marketing

    These cookies are used to track visitors across our websites and show you more relevant ads. Marketing cookies also include third-party cookies from partners. For more information relating to data protection & collection please view our Privacy Policy and Cookie Disclosure.


The Company would like to inform you that it will terminate its operations under the "Fondex" brand by 30th of December 2022. If you wish to open a trading account, kindly visit