SINGAPORE- Oil prices extended gains on Thursday after rising 1 percent the previous session, as bullish forecasts on recovering demand this summer outweighed concerns about the impact of rising COVID-19 cases in India, Japan and Brazil.
Brent crude for June rose 22 cents, or 0.3 percent, to $67.49 a barrel while US West Texas Intermediate crude CLc1 for June was at $64.04 a barrel, up 18 cents, or 0.3 percent.
Oil cartel OPEC, together with Russia and their allies, a group known as OPEC+, stuck to their plans for a gradual easing of oil production restrictions from May to July, after OPEC raised slightly its demand growth for 2021 to 6 million barrels per day. The group also expects global stocks to reach 2.95 billion barrels in July, taking them below the 2015-2019 average. “A closer look at the state of global oil inventories suggests that the market may be closer to the point of rebalancing than what OPEC+ may think,” Citi analysts said, adding that most of the crude inventory overhang has been absorbed by the market although refined products inventories still need to be worked off. — Reuters
