The oil carried by the sign of a recovery in demand

The price of oil have ended in sharply higher on Monday, supported by the prospect of a recovery of demand as countries déconfinent and by decreasing extraction of black gold.

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in New York, the barrel of WTI for delivery in June rose 2.39 dollars, or 8.1%, to finish at 31,82 dollars. He had passed from the beginning of the session, the symbolic threshold of 30 dollars, a first since march 17. In London, the Brent North sea for delivery in July rose 2.31 dollars, or 7.1%, to close at 34,81 usd. Brent was up 5% last week and the WTI to 19%, after having already finished up the two weeks previous.

"The price of crude oil began the week on the right foot, as investors bet on a rebound in demand," pointed out Robbie Fraser of Schneider Electric. "While a number of countries provide for a relaxation of containment measures and restrictions of movement in the weeks to come, we are already seeing indications of a recovery in demand in the United States, including a significant increase in fuel consumption", he added.

There are also "clear signs of a resurgence important activity in chinese refineries, which had supported the imports (chinese), and permit the abundant global reserves of resolve a little bit," added the specialist. The announcement by a u.s. laboratory of encouraging preliminary results in clinical trials on a vaccine against the disease Covid-19 has also supported the course of the black gold to the extent that it fuels the hope of a return to normal economic activity.

voluntary Reduction of the production

The crude prices are recovering for several weeks after the episode of quasi-traumatic passage below zero dollars in the price of WTI for may delivery on the 20th April last, on the eve of its expiration date. Since then, the Organization of the petroleum exporting countries (Opec) and its allies have put in place new voluntary reductions of their production of black gold to fall to levels more consistent with those of the application, sabrés by the pandemic.

The cartel and its main partners have set up a cup of 9.7 million barrels per day over the last two months, a exceptional measure entered into force on 1 may. Saudi Arabia, Kuwait and the united arab Emirates have been announced for wanting to further reduce their production of crude oil, in a context of still offers excess storage and close to its limits. The u.s. Agency information on Energy (EIA) has concluded in a report released Monday that crude production in the basins producing oil from shale would decrease 197.000 barrels per day in June compared to may.

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