Crude oil price hit a two-year high above $72 a barrel on Monday, pressured by the prospect of higher Iranian exports through recovering demand and OPEC+ supply curbs provided underlying support, according to a Reuters report.

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“Demand is strong, demand could recover and second half of the year could be nearly 4 million barrels per day on average more than the first half,” said Vandana Hari of Vanda Insights in an interview with CNBC-TV18.

“It is not expected to reach pre-COVID levels anytime this year, probably sometime in 2022. There is plenty of supply but I don’t see USD 80 per barrel happening this year,” she shared.

“Last week was a second consecutive week of a very strong rally in the Brent and WTI crude. So what we have seen over the past fortnight is growing optimism, bullishness over global oil demand recovery, particularly in the US, the US macroeconomic data has been supporting that narrative, US stocks and weekly demand data that came out last week was also supportive of that sentiment,” she said.

“The bullishness remains intact,” she added.

For the full interview, watch the accompanying video

(Edited by : Abhishek Jha)

First Published:Jun 7, 2021 4:40 PM IST