Oil Prices Continue Gains, Supported by Positive Demand Outlook Overshadowing Concerns About India

Oil prices extended gains Thursday, April 29, after rising 1% in the previous session, as positive expectations about a recovery in demand this summer overshadowed concerns about the impact of an increase in the frequency of Covid-19 infections in India, Japan, and Brazil.

Brent crude for June delivery rose 22 cents, equivalent to 0.3%, to $67.49 a barrel, while US West Texas Intermediate crude for June delivery reached $64.04 a barrel, up 18 cents, or 0.3%.

The OPEC+ group, which includes OPEC, Russia, and their allies, has adhered to its plans to gradually ease restrictions on oil production from May to July, after OPEC slightly raised its forecast for demand growth in 2021 to 6 million barrels per day. The group also expects global stocks to reach 2.95 billion barrels in July, which is below the 2015-2019 average.

Investors’ attention focused on a rise in refinery operating rates in the United States and a decline in distillate stocks last week, according to data released by the Energy Information Administration on Wednesday.

And US crude inventories increased by 90,000 barrels last week, far below analysts’ expectations for a 659,000-barrel increase.