Oil prices rose more than 2% on Monday, supported by signs of a recovery in demand for fuel, while members of the "OPEC +" group abide by an agreement to cut production.
The oil price hike has covered fears of a new wave of Coronavirus infections that could lead to a further slowdown in the global economy.
US benchmark West Texas Intermediate crude contracts ended the session up 86 cents, or 2.4 percent, to $ 37.12 a barrel.
Brent crude futures gained 99 cents, or 2.6 percent, to settle at $ 39.72 a barrel.
Prices recovered from their initial losses after the UAE Energy Minister expressed confidence that the "OPEC +" countries that have shown poor compliance will fulfill their pledges and talk about signs of high demand for oil.
"It seemed to remove some of the negative factors in the market," said Phil Flynn, chief energy analyst at Price Futures Group. "It is the fear about the Coronavirus versus the reality of what is happening on the ground."
An OPEC-led monitoring committee will meet on Tuesday to discuss whether countries have implemented their share of the production cuts.
Iraqi officials working in the giant oil fields in the south of the country told Reuters on Sunday that Iraq had agreed with its major oil companies to further reduce crude production in June.
Sources said that Saudi Arabia also reduced the volume of crude downloads for the month of July, which it will send to at least five buyers in Asia.
Prices were also supported by China's overall crude consumption in May rising 8.2 percent from a year earlier as independent refiners increased operations to meet a recovery in fuel demand in the wake of easing public insulation measures.
The US Energy Information Administration said on Monday that oil production in the seven major rock formations in the United States is expected to drop in July to the lowest level in two years.
Source: Reuters
تعليقات
إرسال تعليق