Oil prices stabilized on Thursday after a two-day drop, reflecting the mixed but recovering economic recovery after the world epidemic. US demand is expected to continue to increase, and the second wave of coronavirus in India leading to further restrictions.
Brent crude, which fell 3% on Wednesday, rose 18 cents, or 0.3%, to $ 66.84 a barrel at 0527 GMT. West Texas Intermediate (WTI) oil rose 37 cents, or 0.6%, to $ 63.73 a barrel after a 3.3% drop from the previous session.
US gasoline demand is increasing ahead of the driving season. In addition, jet fuel demand rose to 1.85 million.
Crude oil stocks in the United States, which is expected to increase 1.6 million barrels, rose 1.3 million barrels last week.
Gasoline stocks were down 2 million barrels compared to 886,000 bbl decrease estimates. Gasoline, a key demand measure, rose 5% to 9.2 million barrels per day. The closure of the Colonial Pipeline had a huge impact on demand.
India’s falling fuel demand is very likely to worsen in May due to movement restrictions.
Almost two-thirds of the people tested in India appear to be exposed to the coronavirus, suggesting that the virus spreads in a spiral fashion, increasing the daily death toll to 4,529.
The price decline this week gained further momentum Wednesday after media reports that the US and Iran are making progress in talks over Tehran’s nuclear program, which could lead to lifting sanctions and bringing more supplies to the market.
Subsequent reports showed that more time was needed to reach an agreement.
Speculation that the Fed could raise interest rates has weighed on the economic growth outlook and has driven some investors away from oil and other commodities.
