WTI Crude Oil prices spiked Tuesday, as some European and Asian countries along with several US states began to ease C-19 coronavirus lockdown measures.
The rally extended Brent Crude Oil gains to 6 days running, while US WTI Crude Oil has rallied for 5 straight sessions.
Fuel demand worldwide was down about 30% in April, but demand is rising due to efforts to lift travel restrictions.
International benchmark Brent Crude Oil rose 3.77, or 13.9%, to settle at 30.97 bbl.
US WTI Crude Oil futures gained 4.17, or 20.5%, to close at 24.56 bbl.
Prices extended their gains in after-hours trading despite industry data showing a larger-than-forecast weekly build in US inventories, as the report also showed a surprise large decliner in gasoline stocks.
US Crude Oil inventories rose 8.4-M bbl last week, data from industry group the American Petroleum Institute (API) showed late Tuesday. Analysts forecast a build of 7.8-M bbl ahead of the government’s report Wednesday morning
The API also reported gasoline stocks fell 2.2-M bbl, compared with analysts’ expectations in a Reuters poll for a 43,000-bbl increase, signaling that demand is recovering.
UBS (NYSE:UBS) said the easing of restrictions helps balance out supply and demand, leading to a shortfall in supply by Q-4.
Morgan Stanley (NYSE:MS) said the peak of oversupply in global markets had likely been reached and a storage crunch is abating.
Have a healthy day, Keep the Faith!