Oil prices rose on Wednesday as expectations of rising fuel demand offset concerns about the impact of a surge in India’s coronavirus cases and higher U.S. crude inventories.
Brent crude futures were up 67 cents, or 1.01%, to $67.09 a barrel at 1352 GMT, after rising 1.2% on Tuesday.
An OPEC+ decision to stick to plans for a phased easing of oil production restrictions from May to July underscored the group’s confidence in a recovery in global demand.
“The market is supported by the general belief that the COVID endgame is in sight,” Tamas Varga, analyst at PVM Oil associates, said. “The market clearly thinks that these extra barrels will be easily accommodated as global consumption picks up in [second half of] 2021,” he added.
Goldman Sachs said on Wednesday it expected “the biggest jump in oil demand ever, a 5.2 million barrels per day rise over the next six months” as vaccination campaigns accelerate in Europe and demand for travel climbs.
