Investing.com – Oil prices rose Thursday amid continued confidence from a group of leading producers in higher oil demand in the second half of the year.
By 9:35 am ET (1:35 pm GMT), it rose 0.8% to $ 70.53 a barrel, continuing to strengthen after closing above $ 70 earlier this week for the first time since October 2018. high.
RBOB US gasoline futures rose 1% to $ 2.2238 a gallon.
The Organization of the Petroleum Exporting Countries stuck to its forecast of a significant recovery in global oil demand in the second half of 2021, led by the United States and China.
In its monthly report released earlier Thursday, the group said this year demand will rise 6.6% or 5.95 million barrels per day unchanged for the second month in a row, despite a slower-than-expected recovery in the first half. this year.
“The global economic recovery has been delayed due to renewed COVID-19 infection and renewed restrictions in key economies including the Eurozone, Japan and India,” OPEC said in its monthly report.
“Overall, the recovery in global economic growth and, therefore, oil demand is expected to intensify in the second half of the year,” the statement said.
The general market showed weakness earlier Thursday ahead of the OPEC report following the release of disappointing US gasoline inventories on Wednesday.
data from the US Energy Information Administration showed production at just over 5 million barrels for the third week in a row, but increased the most since April 2020, increasing by more than 7 million barrels in the second week.
This indicates weaker-than-expected fuel demand in the early summer in the US, the peak season for the auto industry.
“As we approach the summer driving season, we expect to see an upward trend in demand,” analysts at ING said in a research note.
Also significant was the news that fuel demand in India, the world’s third-largest oil consumer, fell to its lowest level since August last year in May as the second wave of Covid-19 dampened economic activity.
“However, given that the number of Covid-19 cases has peaked and restrictions in some regions have been eased, fuel demand should already be in recovery mode,” added ING.
Fusion media or any person associated with Fusion Media will not be held liable in any way for loss or damage arising from the use of information, including data, quotes, charts and buy / sell signals contained on this website. Be fully aware of the risks and costs associated with trading the financial markets, it is one of the most risky forms of investing.