Crude Oil Prices Move Higher On Monday
Oil prices shrugged off early weakness on Monday to jump higher, recovering from news of output increase and demand drop.
Additional support came on expectations that China plans to ship in large volumes of U.S. crude in August and September.
Benchmark Brent crude rose 31 cents or 0.65 percent, to $45.22 a barrel, while U.S. West Texas Intermediate crude futures jumped 57 cents, or 1.34 percent at $42.76 a barrel.
As coronavirus spikes show no sign of abating, major forecasters believe that global oil demand won’t return to 2019 levels until at least 2022.
The International Energy Agency (IEA) said last week that it expects global oil demand to fall by 8.1 million barrels a day year-on-year to 91.1 million barrels a day this year, despite a recovery in business and industrial activity.
The U.S. Energy Information Administration (EIA) and the Organization of the Petroleum Exporting Countries (OPEC) have also reduced their outlooks for global oil production this year, with none projecting oil demand back at 2019 levels by the end of next year.