Oil rose on Thursday to its highest since March, supported by lower US crude inventories, Opec-led supply cuts and recovering demand as governments ease restrictions on people’s movements imposed due to the coronavirus crisis.
Crude prices have slumped in 2020, with global benchmark Brent hitting a 21-year low below $16 in April as demand collapsed. With fuel use rising and mounting signs that the supply glut is being tackled, Brent has since more than doubled.
Brent crude for July rose 42 cents, or 1.2 per cent, at $36.17 per barrel at 0840 GMT.
US West Texas Intermediate crude climbed 40 cents, or 1.2 per cent, to $33.89. Both benchmarks are at their highest since March 11.
“With supply being managed through the compliance among Opec+ and demand recovering in North Asia, particularly in China, things are moving in the right direction in terms of supporting oil prices,” said Victor Shum of IHS Markit.
In the latest sign of a supply glut easing, US crude inventories fell by 5 million barrels last week. Analysts had expected an increase.