ICE Brent rises above $70 on dollar, IEA outlook

Brent crude oil futures rose above $70 a barrel on Thursday, lifted by a weaker dollar and by news the IEA expected global oil demand to rise as the world’s economy recovered.

Global oil use will be almost 0.5 million barrels per day (bpd) higher than expected this year and next on stronger-than-expected demand in North America and Asia, the IEA said in its monthly oil market report.

“Crude has been in a range trade since June. We believe the ultimately break will be to the topside (toward and above $80.00) but do not have the evidence to assume this upside move
is yet in play,” Barclays Capital wrote in a research note.

Thursday’s rise represented Brent’s third session of gains. “We believe the market will retest the range high and 200-week moving average resistance in the $75.27/74.74 area
before renewed stalling,” Barclays said.

The market was also awaiting inventory data from the US. Energy Information Administration for clues to oil demand growth in the world’s top energy consumer. Analysts polled by Reuters
expect a 1.5 million barrel draw.

Tags:  brent oil prices, ICE