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The price of oil continues to rise

Princess Tarfa

On Thursday, oil prices soared after data showed a decline in US inventories and OPEC raised its demand forecast.

By 06:19 GMT, Brent crude futures had risen 85 cents, or 1.3 percent, to $64.52 a barrel, while US West Texas Intermediate (WTI) crude futures had risen 82 cents, or 1.4 percent, to $61.

Fears of slow vaccine rollout and rising COVID-19 cases in India and Brazil have stifled the recent price rises in China and the United States.

"Ongoing delays in vaccine rollouts, and also a global case count approaching January's height, are likely to keep crude's rise in check in the short term. Simultaneously, sustained optimism about a US rebound and the environment evolving from the COVID crisis is maintaining a floor "Vandana Hari, an energy analyst Vanda Insights, agreed.

The dollar fell to a three-week low on Wednesday, making oil more affordable for holders of other currencies.

ING Bank said in a note on Wednesday that, in regard to the weaker dollar, Iran's growing refining activity was "also very supportive," as it "suggests a transfer of the US to the Iranian nuclear agreement, and thus the lifting of the sanctions, is expected to be some way off."

In the meantime, the Organization of Petroleum Exporting Countries (OPEC) has revised its outlook for world oil demand growth this year. It forecasts a 5.95 million barrels per day increase in demand in the year 2021, up 70,000 barrels per day from last month's estimate.

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