The easing of “Corona restrictions” raises oil prices … and expectations of improved demand

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Oil prices rose on Monday, driven by the easing of public isolation measures linked to the outbreak of the Corona virus, and the start of the world’s largest producing countries cuts in crude supplies.

Global fuel demand fell by about 30 percent in April, largely due to orders to stay at home, and weak consumption is expected to keep excess supply on the market for months even as major global producers cut production from May 1. . But analysts said a swift move from those ends could help reduce supply glut at a faster pace.

Brent crude futures ended the session higher, 76 cents, or 2.9 percent, to settle at $ 27.20 a barrel.

US benchmark West Texas Intermediate crude futures rose 61 cents, or 3.1 percent, to settle at $ 20.39 a barrel.

The benchmarks continued to rise in post-settlement trade, extending their gains to more than 5 percent.

“We are supposed to see production cuts begin to appear … the slow resumption of activity not only in some states here in the United States but also in a few countries in Europe begins to partially alleviate,” said Jane McGillian, deputy head of market research at Tradition Energy in Stamford. Some concerns of demand. ”

American investment bank Goldman Sachs said it was increasingly optimistic about the rise in crude prices next year due to lower crude production and a partial recovery in oil demand.

The bank raised its forecast for the year 2021 for the world price of Brent crude to 55.3 dollars per barrel from 52.50 dollars. It also increased its estimate for WTI to $ 51.38 a barrel from $ 48.50 in its previous forecast.

London – Reuters





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