Brent crude has almost doubled since hitting a 21-year low reached on April 22, supported by expectations demand will recover and by a record supply cut led by the Organization of the Petroleum Exporting Countries.
Brent was up 45 cents, or 1.5 per cent, at $31.42 a barrel at 0830 GMT, having risen in the past six sessions. West Texas Intermediate (WTI) crude added 27 cents, or 1.1 per cent, to $24.83.
"Clearly, the optimism of the re-opening of the global economy has supported the oil rally," said Naeem Aslam, analyst at Avatrade.
But in a reminder that a supply glut persists, the American Petroleum Institute said on Tuesday that US crude inventories rose by 8.4 million barrels last week, more than analysts expected.
"We're talking about normalisation of supply and demand but we've got a long way to go," said Lachlan Shaw, National Australia Bank's head of commodity strategy.
Italy, Spain, Nigeria and India, as well as some US states began allowing some people to go back to work and opened up construction sites, parks and libraries.
Germany's federal government and 16 states have agreed on ways to ease the lockdown.
The easing of lockdowns should lead to a recovery in global oil demand, which in April was expected to collapse by at least 20 per cent, an unprecedented drop, as governments told people to stay at home.
To tackle the resulting glut, Opec and its allies agreed to a record oil output cut of 9.7 million barrels per day, about 10 per cent of pre-coronavirus demand. That reduction began on May 1.
For now though, soaring inventories are a reminder of excess supply lingering in the market.
Traders will be looking for confirmation of the API's inventory report when the official US government figures come out later on Wednesday.
"Oil" - Google News
May 06, 2020 at 04:05PM
https://ift.tt/2W5ZF3a
Crude oil prices rise above $31 as lockdown easings counter supply glut - Economic Times
"Oil" - Google News
https://ift.tt/2SukWkJ
https://ift.tt/3fcD5NP
Bagikan Berita Ini
0 Response to "Crude oil prices rise above $31 as lockdown easings counter supply glut - Economic Times"
Post a Comment