Oil climbs with support from raising global demand expectations

Selava Omar – Xeber24.net – “Agencies”

Reports reported that oil prices increased by more than 2% after the International Energy Agency raised its forecast for demand in 2020, but increasing incidence of Coronavirus in the United States in record numbers undermined expectations for a rapid recovery in fuel consumption.

Prices were also supported after data showed that US energy companies reduced the number of operating oil and gas rigs to a record low for the tenth week in a row.

And Brent crude was settled up 89 cents, equivalent to 2% to $ 43.24 a barrel, and US crude was settled at an increase of 93 cents, or 2.4% to $ 40.55 a barrel.

Oil prices also supported stocks rally, where a batch of economic data indicated a recovery in US business activity in June.

Oil stocks are still in glut due to the dissipation of the demand for gasoline, diesel and other fuels during the initial outbreak of the pandemic.

US oil inventories rose by nearly 6 million barrels last week after analysts expected it to drop by nearly half of that figure.

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