Oil Prices Rebound on Resilient Demand Signals.
Crude oil prices inched higher after starting the week with sharp losses, amid reports of rebounding Asian imports and a weaker dollar that should stimulate stronger demand.
At the time of writing Brent crude was trading at $70.05 per barrel, with West Texas Intermediate at $66.75 per barrel, as the U.S. Energy Information Administration made a considerable revision to its supply and demand outlook for this year and next, and the head of the International Energy Agency called for more investments in new oil and gas supply.
Even an estimated U.S. crude oil inventory build, as reported by the American Petroleum Institute, did not offset the effect of the EIA’s report, which saw Brent crude prices rising to an average $75 per barrel in the second quarter on a tighter market.
The EIA said, however, that supply will ramp up in the second half of the year, based on the assumption that OPEC+ will not waver from its latest decision to go ahead and add 138,000 bpd to collective production from April.
Source: OILPRICE