The rise in oil prices stimulate exploration, oil drilling equipment

Internationally, Brent crude oil prices averaged $65 per barrel (/b) in March 2021, up $3/b from February's average. They're projected to average $65/b during the second quarter of 2021 and then average $61/b in the second half of 2021, according to the U.S. Energy Information Administration's (EIA) Short-Term Energy Outlook released on April 6, 2021.1

Brent crude oil prices started strong in 2020, averaging $64/b in January.2

 But they plummeted in the second quarter, closing as low as around $9/b in April, when the price of West Texas Intermediate (WTI) at Cushing in the United States fell to an unprecedented negative price of around -$37/b.34

Brent prices averaged above $40/b by June 2020, increasing to $50/b by the end of 2020. Prices increased to $65/b in March 2021 due to rising oil demands as COVID-19 vaccination rates have increased and economic activity has picked up.

The price increase also reflects supply limitations by the Organization of the Petroleum Exporting Countries (OPEC) and OPEC partner countries. OPEC has been limiting oil production due to decreased demand during the pandemic. At its March 2021 meeting, OPEC announced the production cuts would continue through at least April.5