Crude Oil Maintain Momentum, Global Demand for Energy Picking Up

Amid signs that demand for crude oil is picking up around the world, coupled with the fact that major oil producers are complying with their oil production cut.

Brent crude was up 0.22% to trade at $43.20 a barrel at 10.06 GMT after gaining 2.1% yesterday while West Texas Intermediate was up 0.21% to trade at $40.95 a barrel, having gained 1.8% in the previous trading session.

“We’re starting to see the green shoots of recovery,” Exxon Mobil Australia Chairman Nathan Fay said at Credit Suisse’s annual Australian energy conference on Tuesday, referring to oil demand’s recovery from the collapse triggered by anti-coronavirus lockdowns.

The gradual ease of lockdown restrictions has boosted the bullish momentum in the past eight weeks as crude oil global demand for energy returns.

Meanwhile, on the supply segment, U.S. and Canadian oil and gas drillers reduced the number of rigs operating to a record low.

“U.S. onshore production has now given up two full years of (volume) gains,” said Stephen Innes, chief global markets strategist, at AxiCorp. “It supports the market supposition that even with a rebound in price; the capital investment that had already been tapering off in Q1 isn’t flowing back quickly.”