Oil climbs to fresh 6-week high on bullish demand

Brent futures rose $1.29, or 1.9%, to settle at $68.56 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.15, or 1.8%, to end at $65.01.

That put both benchmarks up for a third day in a row to their highest closes since March 15.

He added that oil prices drew additional support from a weak dollar, which made “oil cheaper to buy internationally.”

The greenback <.DXY> hovered near nine-week lows, under pressure from a dovish outlook from the U.S. Federal Reserve and bold spending plans from U.S. President Joe Biden.

“The crude demand outlook is getting a big boost from Europe and that should overcome some of the risks across India and many emerging markets,” said Edward Moya, senior market analyst at OANDA in New York.

New York City aims to “fully reopen” on July 1 after more than a year of closures and capacity restrictions, Mayor Bill de Blasio said, citing satisfactory progress in vaccinating its more than 8 million residents.

“The outbreak in India is holding back oil’s rally,” Howie Lee, an economist at Singapore’s OCBC bank, said.

In Europe, major energy companies, including BP PLC (BP.L), Total SE (TOTF.PA) and Equinor ASA (EQNR.OL), profited from higher oil prices to report big increases in first-quarter earnings

U.S. economic growth accelerated in the first quarter, fueled by massive government aid to households and businesses, charting the course for what is expected to be the strongest performance this year in nearly four decades.