Oil gains on growing fuel demand, even as infections rise
Oil prices rose on Friday, extending gains on optimism about a recovery in fuel demand worldwide, despite a surge in coronavirus infections in some U.S. states and signs of a revival in U.S. crude production, Reuters reports.
U.S. West Texas Intermediate (WTI) crude CLc1 futures gained 57 cents, or 1.5%, to $39.29 at 0431 GMT but were on track for a slight drop for the week.
Brent crude LCOc1 futures rose 64 cents, or 1.6%, to $41.69 and were also heading for a small decline for the week.
The global economic outlook has also worsened or at best stayed about the same in the past month, a majority of economists polled by Reuters said, and the recession underway is expected to be deeper than earlier predicted.
“It does appear the market is ignoring supply and demand fundamentals and moving on sentiment,” said Michael McCarthy, chief market strategist at CMC Markets.
The prospect of increased U.S. crude production also kept a lid on gains on Friday.
A survey of executives in the top U.S. oil and gas producing region by the Dallas Federal Reserve Bank found more than half of executives who cut production expect to resume some output by the end of July.