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MELBOURNE (Reuters) – Oil prices rose earlier in the trade on Tuesday, adding to gains from the previous session, on expectations that fuel demand will start to rise as some states and nations in USA USA In Europe and Asia begin to ease the measures to block the coronavirus.
FILE PHOTO: A worker in an oil field owned by Bashneft, Bashkortostan, Russia, January 28, 2015. REUTERS / Sergei Karpukhin
West Texas Intermediate (WTI) CLc1 crude futures rose as much as 8.2% to a three-week high of $ 22.06 and rose 7.6%, or $ 1.55, to $ 21.94 at 0108 GMT. The reference point of EE. USA He is on a streak of five consecutive days that started on April 29.
Brent LCOc1 crude oil futures peaked at $ 28.37 a barrel in early trading and rose 4.1%, or $ 1.12 cents, to $ 28.32. Brent is ready for the sixth consecutive day.
Both benchmark contracts rose 3% on Monday.
The outlook improved for fuel demand as some US states. USA And several countries, including Italy, Spain, Portugal, India, and Thailand, started allowing some people to go back to work and opened construction sites, parks, and libraries.
“Considering … the depth of demand destruction, the markets are likely to be inclined to take good news relatively quickly,” said Daniel Hynes, commodities strategist for Australia and New Zealand Banking Group.
Global oil demand likely collapsed by as much as 30% in April, analysts say, and the recovery is likely to be slow, especially if airlines are expected to remain largely in the coming months.
Australian national airline Qantas Airways’ (QAN.AX) Chief Executive Alan Joyce said Tuesday that “the demand for international travel could take years to get back to what it was.”
With Saudi Arabia, Russia, and other major producers and companies cutting output, the market ignored a decision by the Texas energy regulator to cancel a vote to demand a 20% production cut in the largest oil-producing state. from United States.
The Texas Railroad Commission was due to hold the vote Tuesday, but Commissioner Ryan Sitton was unable to obtain the support of his fellow commissioners for the plan. The proposal was strongly rejected by the oil trade groups and the main oil shale producers.
“The intention itself was positive, but it was always going to be a long shot,” Hynes said.
Report by Sonali Paul; Editing by Tom Hogue
