US West Texas Intermediate crude (WTI) CLc1 gained 33 cents, or 0.9%, at $37.14, also the highest since March 6. The cuts are currently due to run through May and June, scaling back to a reduction of 7.7 million bpd from July to December, but Saudi Arabia has been pushing to keep the deeper cuts in place for longer. “As virus-related lockdown measures continue to be lifted, we expect that demand will gradually recover,” Capital Economics said in a note, estimating that global oil consumption will fall to just under 92 million bpd on average in 2020. This compared with 100.2 million bpd in 2019, it said, before the pandemic swept through Europe and the United States, evaporating demand for everything from flying to trips to the dentist. Oil is likely to end up in “a small deficit later this year, which should provide some additional support to prices,” it added.

Source: Dhaka Tribune June 03, 2020 00:33 UTC