Oil Futures Rebound as Recovery Hopes Emerge

Oil prices rose on Monday, opening the week with a strong performance amid expectations for recovery from the coronavirus pandemic.

Recent media reports suggested that the Indian Prime Minister, Narendra Modi, is going forward with a new construction project named the Central Vista Redevelopment Project, which includes establishing new buildings for the Parliament and ministries, as well as revamped residences and offices for the Vice President and the Prime Minister.

The project is continuing as an essential service, which means it continues even during restrict lockdown measures, and despite criticisms that it does not reflect the priorities of fighting the pandemic amid a crisis that overwhelmed the healthcare sector in the world’s second-most populous country.

The increase in crude prices comes despite the continuous crisis in India, the third-largest oil importer in the world, which continues to battle with the high number of new cases amid a new wave.

The number of new daily cases in India declined below 300,000 for the first in weeks, with the health ministry announcing roughly 280,000 cases and a little over 4,100 deaths.

Brent crude for July delivery finished higher by 75 cents, or 1.1%, at $69.46 per barrel. This marked the highest closing level for the global benchmark most active contract since March.

Meanwhile, the U.S. West Texas Intermediate (WTI) crude futures for June delivery gained 90 cents, or 1.4%, to close at $66.27 per barrel, marking its highest finishing level in about two years.