Crude oil and metals prices rise on better global economic data

Brent rises 134% in twelve months and futures target $70 a barrel

photo_camera AP/ERIC GAY - Oil field near Karnes City, Texas

The data on the improvement of the economy in Asia and the United States, although in Europe the figures are more negative, are gradually boosting, in addition to the stock markets, the price of oil. The Brent barrel, the benchmark in Europe, is up more than 0.5% on Monday and is above 68.5 dollars, while the US West Texas barrel is trading at more than 65.5 dollars.

Over the year, European crude is up nearly 33% and 134% in twelve months, while futures are once again pointing to Brent trading at 70 dollars. Another factor driving the price of crude oil and metals is the weakness of the dollar, which is falling at the same time as US bond yields are falling.

It is not only oil, other commodities closely related to economic activity, such as metals in general and copper in particular, are advancing in the heat of the recovery. The red metal is at an all-time high, a development that threatens the profitability of certain industrial activities and even renewable energies.

A circumstantial factor is also influencing this evolution. A cyber-attack on the company Colonial, which controls the largest oil pipeline network in the United States, has set off alarm bells in that country. President Joe Biden has lifted restrictions on the transport of fuel by road to avoid the risk of the attack causing supply problems.

Colonial, which is based in Georgia, has been forced to halt transport operations on its network of more than 8,850 kilometres of pipelines, which are essential to supply cities and other population centres in the eastern and southern US. It transports about 2.5 million barrels of gasoline, diesel and gasoil a day from refineries in the Gulf of Mexico. In a statement released on Sunday, the company did not specify when its major transport infrastructure will be operational.

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