Oil Prices Extend Gains On Demand Recovery Hopes
Oil prices rallied on Tuesday to extend gains from the previous session as positive PMI data from Europe boosted hopes of a bounce in demand.
Benchmark Brent crude climbed 1.1 percent to $43.55 a barrel, after having risen 2.1 percent on Monday. U.S oil futures were up 1.3 percent at $41.25 a barrel, after gaining 1.8 percent the previous day.
As many nations ease lockdown measures, investors turned their attention back to improving demand and easing supply.
New York City, the epicentre of the U.S. outbreak, eased restrictions after 100 days of lockdown despite a number of states continuing to report a rise in new virus cases and hospitalizations.
On the supply side, U.S. and Canadian oil and gas drillers cut the number of the rigs they are operating to a record low.
There is more relief on the data front as a closely-watched measure of economic activity pointed to a continued rebound for the euro zone in June.
The euro area private sector contracted at a slower pace in June as lockdowns to prevent the spread of the coronavirus disease outbreak were further relaxed, flash survey results published by IHS Markit showed.
The flash composite output index advanced more-than-expected to 47.5 from 31.9 in May. The score was forecast to rise to 42.4.
Elsewhere, an initial ‘flash’ reading from IHS Markit showed that the U.K. manufacturing price managers’ index improved to 50.1 in June from 40.7 in May. Markets had expected a more modest improvement to 45.2.