Oil prices jumped again today, Tuesday, thanks to hopes of recovering demand for fuel, as some American states, European and Asian countries started to ease general isolation measures imposed to contain the spread of the emerging Corona virus.
US West Texas Intermediate crude futures rose 10% to $ 22.43 a barrel by eight in the morning, according to Anatolia, and that is the fifth consecutive session in which US crude has been rising.
Brent crude futures for July delivery rose 7% to $ 29.12 a barrel, to rise for the sixth consecutive session.
Expectations for fuel demand improved with the start of US states and several countries - including Italy, Spain, Portugal, India, and Thailand - to allow some to return to their work, resume work on construction sites, and open the doors of parks and libraries.
"The main indicators in the oil market have recently shown signs of improvement, and prices are reacting positively," said Stephen Ennis, an expert on global markets at Axi Corp.
"The reserves started to decline quickly with signs of improvement in demand, at a time when the most important economies took the first step towards revitalizing the movement," according to the French Press Agency.
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Slow recovery,
but analysts said global demand for oil probably fell by about 30% last April, and that the recovery is likely to be slow, especially with expectations that most international airline operations will continue to halt for months.
And markets ignored a decision by the energy regulator in the US state of Texas - the largest state producing oil in America - to abandon a proposal to cut production by 20%, in light of Saudi Arabia, Russia and other major oil producing countries and prominent companies producing.
Since the beginning of May this year, the OPEC Alliance started implementing a reduction in oil production by 9.7 million barrels per day and will last for two months, in an attempt to eliminate the oversupply of oil in the global market.
An initial Reuters poll shows that US oil inventories will rise for the 15th week in a row, while oil product inventories are likely to have also increased last week.
Crude oil prices faced sharp declines during the past two months and early this month as a result of oversupply resulting from the decline in global demand, driven by international measures to meet the corona, after which demand declined.