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Oil continues to rally as markets confident about global demand recovery

28 Apr 2021 11:09 AM

Oil prices rose today, amid optimistic expectations of a recovery in global fuel demand, while the rapid spread of Coronavirus infections in India and the increase in US crude inventories is greater than expected.

Brent crude rose to trade at levels of $ 66 a barrel, and WTI rose to trade just below $ 63 levels. OPEC+’s decision to adhere to plans to gradually ease oil production restrictions from May to July, confirmed markets confidence in the recovery of global demand.

Goldman Sachs predicted "the largest jump in oil demand ever, a rise of 5.2 million barrels per day over the next six months," indicating the acceleration of vaccinations in Europe and the unlocking of disrupted travel demand, stressing that the easing of international travel restrictions in May will lead to a recovery global demand for jet fuel increased by 1.5 million barrels per day.

In a report by OPEC+ experts, the group predicted that global oil demand will grow in 2021 by about 6 million barrels per day, after it fell by about 9.5 million barrels per day last year.

The American Petroleum Institute reported that crude oil inventories rose 4.319 million barrels in the last week, an increase far greater than expectations. Weekly inventory data from the US Energy Information Administration (EIA) is due for release today, which will be closely followed.

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