Oil prices rise on demand recovery hope

Gulf Today Report 

Oil prices advanced on Friday on hope for demand recovery following the ease of lockdown and economic growth, however, the surge in India’s COVID-19 cases capped gains.

Brent crude futures rose 37 cents, or 0.6%, to $65.77 a barrel while US West Texas Intermediate (WTI) crude futures jumped 45 cents, or 0.7%, to $61.88 a barrel.

Margaret Yang, a strategist at DailyFX said, "oil prices rebounded for a second day as a lower-than-expected US jobless claims data buoyed the energy demand outlook in North America."

Data from the US and China have indicated a robust economic recovery. Meanwhile, OPEC+ is set to meet and next week and would likely keep the current production plan, she added.

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US refiner Valero said gasoline and diesel demand were back to 93% and 100% of the levels they were at before the pandemic, with chief commercial officer Gary Simmons saying the company is "pretty bullish on gasoline going forward".

In Europe, hope for an increase in demand is rekindling as France sets a date for school reopening and the end of domestic travel curbs.

The resurgence of infections in India and Japan, however, pointed to an uneven demand recovery in different parts of the world and oil prices could come under further pressure if the situation worsens in these key markets, analysts said.