Oil Rises on US Inventory Drop
Oil prices have picked up over 1% yesterday after data showed a substantial fall in crude inventories in the US.
An 8.2 million barrel drop to 537 million barrels, against the forecasted 710 million barrels, points to improving demand, despite the increasing global coronavirus spread. In response, Brent Crude had risen 48 cents - an impressive 1.2%, while US crude gained 54 cents - 1.4%, resulting in a standing of approximately $41.75/barrel for Brent and $39.81/barrel for WTI.
Another factor supporting oil prices is OPEC’s output drop in June, which is now the lowest in the past 20 years.
A Reuters poll of analysts indicates that oil prices should consolidate at around $40 a barrel this year, with recovery potentially picking up in the fourth quarter.
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