The head of the Japan Petroleum Industry Association, Tsutomu Sugimori, said today, Wednesday, that oil prices are heading to rise this year in light of the strong recovery of global demand in the wake of the decline caused by the Covid-19 pandemic.

"Global demand for crude is expected to witness further recovery in the second half of the year, with the pandemic receding and the recovery of economic activity in the United States and Europe," he said in a press conference.

He added that benchmark Middle East crude prices in Dubai are expected to remain near $70 a barrel for some time.

And the International Energy Agency said last week that the world will need more oil from OPEC + as global demand is on track to return to pre-pandemic levels by the end of next year. 

This came a few weeks after the agency said that oil production must be reduced in the long term to reduce emissions.

Sugimori, chairman of Japan's largest refiner Ineos Holdings, expected fuel demand to grow in the country later in the year.

Yesterday, Tuesday, the price of Brent crude oil crossed $74 a barrel for the first time since April 2019.

The price of northern marine oil from Brent blend in the contracts for August on the London Stock Exchange “ICE” reached a point of 74.04 dollars per barrel, an increase of about 1.6 percent.

The price of US oil “WTI” contracts for July also rose to the level of 72.09 dollars per barrel, an increase of 1.74%.

Oil prices have been rising continuously for three weeks, on the back of improved demand expectations, after the success of the vaccination process against the Coronavirus, which contributed to lifting some travel restrictions and in light of a limited supply in the markets.