Oil gains 1% amid upbeat demand forecasts

Wednesday, 12. May 2021 13:12

The prices of oil rose more than 1% on Wednesday as the investors digested optimistic forecasts regarding the future demand for crude.

The International Energy Agency (IEA) predicted earlier in the day that the oil demand will outpace the supply as the coronavirus recovery gains speed, while the Organization of the Petroleum Exporting Countries (OPEC) revealed the day before its expectations of demand for crude increasing by 6 million barrels per day in 2021. The sentiment was backed by American Petroleum Institute's (API) report that unveiled that the United States crude inventories have declined by 2.5 million barrels last week.

Brent for July delivery was up 1.11% to $69.31 per barrel at 7:00 am ET, while West Texas Intermediate for June settlements advanced 1.18% to $66.05 per barrel a minute later.

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Breaking the News / BU