Oil prices eased on Friday, but made a weekly gain, with the backdrop of optimism about the global economic recovery, despite the fact that COVID-19 took a state of crisis in India.
Brent crude oil futures fell 12 cents, or 0.2%, to $ 67.97 per barrel, and U.S. West Texas Intermediate (WTI) crude oil fell 10 cents, or 0.2%, to $ 64.61.
Fuel demand increased as restrictions eased in the United States and Europe, factory operations improved, and coronavirus vaccines became widespread. Both Brent and WTI are on track for second consecutive weekly gains.
In China, data showed that export growth accelerated unexpectedly in April, while a special survey pointed to a strong expansion in service sector activity.
However, crude oil imports from the world’s largest buyer fell 0.2% year-on-year in April to 40.36 million tons, or 9.82 million barrels per day (bpd), the lowest since December.
Also, the recovery in oil demand has been uneven, as the rise of COVID-19 cases in India has reduced fuel consumption in the world’s third-largest oil importer.
Brent soon reached to the levels that may get over the $ 70, but demand uncertainty discourages prices.
The resurgence of COVID-19 in countries such as India, Japan and Thailand is preventing the recovery of gasoline demand. However, some of the lost demand is being compensated by countries like China, which recently recovered and returned to 2019 levels.
Gasoline demand is relatively good in the US and parts of Europe.
Thereafter, we can see demand increase as the deadlocks ease. However, this situation does not relieve the pressure on the demand for the summer season.
