Oil prices have edged-up on hopes that fuel demand will recover as some countries begin to ease coronavirus lockdown measures.
Some of the US states, European nations, and Asian countries have started to partially lift the coronavirus lockdown restrictions, reported Reuters.
US West Texas Intermediate (WTI) crude futures rose 8.2% to $22.06 a barrel and were up 6.5%, or $1.33, at $21.72 at 0454 GMT.
Meanwhile, Brent crude LCOc1 futures increased to $28.57 per barrel and were up 4.8%, or $1.31, at $28.51, reported the news agency.
Australia and New Zealand Banking Group senior commodity strategist Daniel Hynes was quoted by the news agency as saying: “Considering … the depths of demand destruction, markets are probably inclined to take any good news relatively quickly.”
The record supply cut production of approximately ten million bpd cuts agreed by the OPEC+ Group, led by Russia, officially started from 01 May.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Meanwhile, a Texas energy regulator abandoned the proposal to consider cutting 20% of oil output in the US state on 4 May.
The Texas Railroad Commission was to hold the vote today, but State Railroad Commissioner Ryan Sitton was unable to win fellow commissioners’ support for the proposal.
Hynes was quoted as saying: “The intent in itself was positive – but it was always going to be a long shot.”