Oil prices rose on Thursday, as China’s exports rose unexpectedly last month, and the US production cuts, plus some European activities were slowly returning.
Brent crude LCOc1 was up 6.26%, or $1.86, at $31.58 a barrel by 1121 GMT, after rising more than $2 at one point. In the previous session, the price had dropped 4%.
West Texas Intermediate (WTI) futures CLc1 climbed 8.5%, or $2.04, to $26.03 a barrel, after dropping more than 2% in the previous session.
According to some analysts, Brent is trying to go back to early April, the market is testing Brent’s capacity to stay above $ 30 a barrel. The super contango no longer exist. Refinery studies are returning, US production cutting is improved and all support oil. It is said that the increased demand for US gasoline and declined Saudi exports are perceived as positive signs.
US gasoline stocks USOILG = ECI fell for a second week as vehicle traffic in some US states began to normalize.
Saudi Arabia sharply increased official sales prices for June, after reducing its exports to almost the lowest level in ten years, following the global producers’ agreement to cut production to raise prices.
By the way, despite the recovery considering the figures in the physical market, the mismatch between demand and supply continues.
The change in market sentiment was raising prices earlier this week, but physical supply is not yet supported by demand.