Lockdowns Ease, Demand Hopes Rise, Crude Oil Price Spikes

Lockdowns Ease,  Demand Hopes Rise, Crude Oil Price Spikes


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.

Click here for HeffX’s latest report on Crude Oil, it Free.

Have a healthy day, Keep the Faith!

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