International crude oil benchmark, Brent crude futures firmed up above $83.8 per barrel yesterday as strong demand outlook outweighed fears over a United States government intervention in the oil market.
WTI crude oil futures extended gains for a third straight session, surpassing the $82.7 per barrel mark.
Oil prices were buoyed by the passage of a $1 trillion US infrastructure bill, strong Chinese export data and the return of global travel, with major economies such as the US easing travel curbs and opening borders for foreign tourists.
Further, US energy companies revealed plans to significantly reduce hedging in a sign of confidence that oil prices will remain elevated.
The threat of a US action to curb high energy prices, however, still looms as US senate democrats called on president Joe Biden to “consider all tools available at your disposal to lower gasoline prices,” which they said include a release from the Strategic Petroleum Reserve and a ban on crude oil exports.