SULAIMANI (ESTA) — Oil prices were up on Wednesday amid optimistic forecasts of global fuel demand recovery.
Brent crude rose 32 cents to $66.74 a barrel by 0617 GMT, while U.S. West Texas Intermediate (WTI) crude futures gained 26 cents to settle at $63.20.
An OPEC+ decision to stick to plans for a phased easing of oil output restrictions from May to July underscored the producers’ confidence in a recovery in global demand, according to Reuters.
According to a Wednesday research note, U.S. bank Goldman Sachs expected “the biggest jump in oil demand ever, a 5.2 million barrels per day (bpd) rise over the next six months,” Reuters reported.
The easing of international travel restrictions in May will lead global jet demand to recover by 1.5 million bpd, Goldman said.
“The oil cartel remains confident about the demand outlook as the economies of the U.S. and China rebound strongly. This helped to offset concerns about growing coronavirus cases in India, Japan and Brazil,” DailyFX strategist Margaret Yang noted.
