Oil prices are rising steadily during Tuesday morning trading amid hopes for a recovery in demand when the restrictions imposed in connection with the coronavirus pandemic are lifted, INTERFAX reports.
Quotes were also supported by data from Genscape, which reported an increase in oil reserves at the terminal in US Cushing, which stores NYMEX-traded oil, by 1.8 million barrels. If official data on Wednesday show a similar value, it will be the smallest increase since mid-March, writes Bloomberg.
The cost of July Brent oil futures on the London ICE Futures exchange by 8:34 Moscow time was $ 28.26 per barrel, which is $ 1.06 (3.9%) higher than the closing price of the previous session. As a result of trading on Monday, May 4, July futures rose $ 0.76 (2.9%), to $ 27.2 per barrel.
Futures for WTI oil in June in electronic trading on the New York Mercantile Exchange (NYMEX) by this time rose in price by $ 1.23 (6.03%) to $ 21.62 per barrel. By the close of previous trading, the contract price was $ 20.39 per barrel, up $ 0.61 (3.1%).
Signs that a drop in demand in a number of markets could have bottomed out also aid improving sentiment, but it will take some time to eliminate supply oversupply. According to the economist Oversea-Chinese Banking Corp. Howie Lee, although the worst for the oil market seems to be over, quotes still don’t have a significant driver for growth
Source: Turkmenistan: the Golden Age Online Newspaper