Global crude oil prices have edged up supported by a weakening of the US dollar even as rising output and weak demand outlook continue to concern investors.
Brent crude futures for June increased by $0.07, or 0.1%, to reach $63.27 a barrel while the US West Texas Intermediate (WTI) crude for May rose by $0.17, or 0.3%, to reach $59.77 a barrel, reported Reuters.
ANZ analysts was cited by the news agency as saying in a note: “A weaker USD and falling US bond yields helped support investors’ appetite in commodity markets.”
This week, the two contracts are expected to witness a drop by 2%-3% following the decision made earlier this month by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, a group known as OPEC+.
The OPEC+ agreed to gradually increase oil supplies by two million barrels per day between May and July this year.
Analysts expect that oil inventories would continue to dip across the world as demand for fuel will accelerate in the second half of 2021.
However, concerns are rising over oil demand outlook as more countries are imposing lockdowns to contain the surging infection.
Axi chief global markets strategist Stephen Innes was cited by the news agency as saying that prices of crude oil could trade in a range between $60 and $70 as investors consider these factors.