Oil prices increase with recovery in fuel demand
On Tuesday, oil prices increase with growing hopes for an unexpected recovery in fuel demand as the coronavirus pandemic lockdown measures are eased across the world, but increments were hindered by the portion of continuous oversupply in the oil industry. The United States West Texas Intermediate (WTI) crude futures gained to almost 0.8 percent or 31 cents to around $38.50 per barrel after decreasing by $1.36.
The head of market strategist at CMC Markets, Michael McCarthy said that with Brent oil holding nicely more than $ 40, there is discussion among traders that WTI will examine that level soon. Goldman Sachs increased its this year oil price estimates, with Brent now observed at $40.40 barrel and WTI at dollar 36 a barrel, but it recommended that prices would be expected to pull back in the recent weeks because of the fuel demand uncertainty and overhanging of inventories.
Tuesday’s increments came as New York that started reopening after about three months of coronavirus lockdown, has now spurring fuel demand. The United States crude and gasoline inventories are estimated to have dropped by 1.5 million barrels and around 100,000 barrels in the week to 5th of June, represented ahead of the data from American Petroleum Institute market group recently.