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Crude Oil Demand Jumps, As Brent Crude Surges To $31.55
Amid instability of crude oil prices and demand around the world, the crude oil price has appreciated in today’s market, as China’s grand export data was released on Thursday evening.
China’s exports rose by 3.5% in April from than the previous earlier.
Brandnewsday gathered that the Brent crude harvested 5% at $31.43 a barrel as at 2.42 pm local time today, after losing about 4% on Wednesday.
As more countries are easing the lockdown to contain the deadly coronavirus pandemic across the world, Crude oil prices are gaining ground as at last week. Brent crude has shown an example by breaking the repellent level of $30 per barrel, thus reveals that oil demand has risen.
Meanwhile, the perpetual pumping of crude into storage tanks has led to the distortion between demand and supply of the crude.
Read: Global Oil Price Surges, As Nigeria’s Bonny Light Crude Jumps To 22.7%
Speaking with the Reuters, Citi Research disclosed that “a shift in market sentiment was lifting prices earlier this week, but the physical overhang does not want to go away just yet.”
In a similar vein, a senior market analyst at OANDA, Edward Moya revealed to Reuters that the futuristic price of crude will eventually settle on a wide $10 range. He stated: “Oil prices should eventually settle on a wide $10 range, with WTI crude’s upper boundary being around the $30 a barrel level, while Brent crude targets the $35 a barrel level.”
Recall that Brandnewsday had reported that Nigeria’s Bonny Light Crude has increased by 22.7% increase in sales.
As more countries are easing their coronavirus lockdowns, output cuts by OPEC+ and other top oil-producing countries have started to gain supply excess.
Meanwhile, as the oil market continues to improve on Tuesday, thus, making oil prices strive higher, as a result of an increase in demand by some countries that are easing their lockdown.
