Oil prices rose more than 2% on Friday after the increase in 2020 demand forecasts, although new coronavirus incidents in the US have reduced the expectations for rapid recovery in fuel consumption.
Prices were also supported, as US energy companies reduced the number of oil and gas facilities to a record high in the 10th week in a row.
Brent crude LCOc1 settled up 89 cents, or 2%, at $43.24 a barrel and WTI oil CLc1 settled up 93 cents, or 2.4%, at $40.55 a barrel.
The strong stock market also raised oil prices. Economic data signaled a revival in US business activity in June.
US crude oil changed little weekly, while Brent recorded a weekly gain of 1%.
Demand forecast rose 400,000 bpd from last month’s outlook to 92.1 million barrels (bpd) daily.
Still, more than 60,500 new cases of COVID-19 were reported in the United States on Thursday. This amount is the highest daily record for all countries since the pandemic appeared in China last year.
Meanwhile, due to the given up blockade in Libya and the opening of oil exports, prices fell at the beginning of the session, but later recovered with positive effects.
Oil stocks are still in glut due to the collapse of fuel demand in the early stages of the outbreak. When we look at a larger picture of the market, it is noteworthy that there is not much decrease in the global inventory front yet. Opec + and other allies, including Russia, are also perform in discipline to cut the supply by 9.7 million bpd per day in July.
However, contrary to analysts’ expectations for decline, US crude oil inventories increased by about 6 million barrels last week. In addition, the growing tension between the US and China continues to put pressure on prices.