02:54 PM EDT, 05/17/2021 (MT Newswires) -- West Texas Intermediate (WTI) crude oil rose to the highest since April, 2019, as investors see higher demand on the way as vaccine programs continue.
WTI crude for June delivery reversed early losses to end up US$0.90 to US$66.27 per barrel, Marketwatch reported. July Brent crude, the global benchmark, was last seen up US$0.70 to US$69.41 while Western Canada Select was up US$0.63 to US$53.26 per barrel.
The rise comes as the market eyes the coming Memorial Day long weekend, the traditional start of summer driving season in the United States, and hopes that a reviving U.S. economy will see more Americans hit the road.
"Memorial Day is two weeks from today...summer driving season will be in in full swing. The opening of the economy trade should green light a rally in Gasoline that should drag the rest of the complex along for the ride. Robert Yawger, director of energy futures for Mizuho Securities USA, said in a note.
Despite the optimism over the strength of demand over the summer, Covid-19 infections continue to surge in parts of Asia, offering a more bearish picture.
"The Covid situation in parts of Asia continues to impact oil prices negatively, with demand concerns weighing as three additional prefectures were put under restrictions in Japan. India domestic fuel demand has dropped near 25% from the previous month according to a Reuters report, while surging cases in Indonesia and Thailand will crimp demand for motor fuels," Action Economics said in a note.