Oil prices surged on Friday and were advancing for gain in the second week amid economic halt by Coronavirus pandemic. It has generated hope in the oil stockpile market, and analysts predict that the demand for fuel will rise even more in the coming weeks.
Brent crude had gained 0.3% or 14 cents, at $45.10 (by GMT 0043), advancing for an increase of about 1.6% this week.
West Texas Intermediate was up by 0.3% or 12 cents to reach $43.36.
The United States benchmark is advancing for an increase of about 3% this week.
In the starting of the week, The Organization of the Petroleum Exporting Countries said: “The demand for oil stockpiles will drop by 9.6 million barrel this year”.
Robert Yawger, director of future energy at Mizuho Securities, said that the market is improving; still, business dynamics are not up to the mark. He ended his speech by saying “firms are oversupplying the market”.
The International Agency for Energy has diminished its oil demand forecast this year. They said that oil consumption would cut by 8.1 million barrels per day this year due to COVID-19.
OPEC+ (includes Russia and other allies of OPEC), has cut short their output around 10% of the global demand since May, to handle the economic incurred from the world health crisis.