Oil tops $40 for 1st time since March on OPEC cuts, demand recovery

Oil tops $40 for 1st time since March on OPEC cuts, demand recovery

Oil rose on Wednesday, topping $40 a barrel for the first time since March, supported by lower U.S. inventories, expectations OPEC+ will keep oil output cuts in place and signs of demand recovery from the coronavirus crisis, Trend reports with reference to Reuters.

Suggesting a supply glut is on the way out, the American Petroleum Institute said on Tuesday U.S. crude inventories fell by 483,000 barrels. The government’s official supply report is due out later on Wednesday.

Brent crude futures for August were up 59 cents, or 1.5%, at $40.16 by 0840 GMT, reaching a high of $40.53, the highest since March 6. U.S. West Texas Intermediate (WTI) crude for July gained 80 cents, or 2.2%, to $37.61.

“A consensus is emerging that the producer group will prolong current cuts,” said Stephen Brennock of oil broker PVM, referring to OPEC and its allies.

Both benchmarks have surged in recent weeks. Brent has more than doubled after hitting a 21-year low below $16 in April, when U.S. crude went negative. A recovery in China and the easing of government lockdowns elsewhere is supporting prices.

The Organization of the Petroleum Exporting Countries and other producers including Russia, known as OPEC+, are cutting output by 9.7 million barrels per day (bpd), about 10% of pre-coronavirus global output, in May and June to support prices.

OPEC+, encouraged by signs of recovery in the market, is considering extending the 9.7 million bpd cut beyond June. But there has been no agreement yet on bringing forward a ministerial meeting to Thursday from later in June as currently scheduled.

“When you have Brent approaching $40, it is a good sign,” said an OPEC delegate. “We are on the right track.”

The demand outlook appears stronger. The services sector in China, the world’s second-biggest oil consumer, returned to growth for the first time since January, a survey showed.

“As virus-related lockdown measures continue to be lifted, we expect that demand will gradually recover,” Capital Economics said in a report.

Iran reveals its COVID-19 data for July 5
Iran reveals its COVID-19 data for July 5
Iran launches second phase of Persian Gulf Star Refinery
Iran launches second phase of Persian Gulf Star Refinery
Zarif says will publish letters on how to activate dispute resolution mechanism
Zarif says will publish letters on how to activate dispute resolution mechanism
Loading Bars
Latest
Iran reveals its COVID-19 data for July 5
EIB’s involvement in Azerbaijan focused on social and economic infrastructure
Tokyo confirms 111 new coronavirus cases on Sunday, NHK says
Facebook - leader among social networks in Azerbaijan
TOP-10 Azerbaijani private companies for non-oil export
Oil transportation via Batman Dortyol pipeline through Turkey up
Google Chrome's share in Azerbaijan's browser market grows
Iran launches second phase of Persian Gulf Star Refinery
Azerbaijani Bank BTB’s profit up in 2019
Mexico surpasses France in coronavirus death toll
Digitalization - driver of Azerbaijan’s economic growth
Croatia holds parliamentary elections amid COVID-19 resurgence
Reforms in Uzbekistan attract more Indian businesses
Armenia violates ceasefire with Azerbaijan 43 times
Georgia sees increase in Producer Price Index
1,452 new coronavirus cases detected in Kazakhstan for the past day
Rapper Kanye West announces U.S. presidential bid on Twitter
Zarif says will publish letters on how to activate dispute resolution mechanism
IFC talks development of solar photovoltaic parks in Uzbekistan
7 dead due to heavy rains, flooding in southwestern Japan
Moscow's death toll from confirmed coronavirus cases rises by 24 to 3,953
Iran files lawsuit against U.S. over sanctions amid COVID-19 fight
Turkey's daily COVID-19 cases drop slightly for 5th day
WHO halts hydroxychloroquine, HIV drugs in COVID trials after failure to reduce death
WHO reports single-day increase in coronavirus cases by over 212,000
A patient with a coronavirus died in Bukhara region
Two new COVID-19 cases confirmed in Georgia
Azerbaijan to simplify its int'l road transport movement with new e-technology
Turkey's cement export to Iraq drops
Fire in power plant in SW Iran contained
TRACECA to implement pilot project on applying electronic permits
Azerbaijani university opens tender on repair work
Azerbaijan confirms 534 new COVID-19 cases
AZAL to perform another additional special flight to Istanbul
1 dead, 3 wounded in U.S. nightclub shooting
Brazil reports over 1.5 mln COVID-19 cases, with 63,174 deaths
Azerbaijan to increase share of renewables in electricity generation
Azerbaijan Investment Company purchasing shares
Foreign trade operations between Azerbaijan, Malaysia almost double
Volume of S.Korean goods import to Azerbaijan grows
Turkmenistan to start second stage of cement plant construction in Lebap region
New tourist zone to open in Baku (PHOTO)
BSTDB may release second tranche of manat bonds
Azerbaijani Kapital Bank expanding mortgage lending
State Commodity Exchange of Turkmenistan reveals data for 1H2020
Azerbaijan-Mexico five-month trade turnover increases
Turkey unveils volume of cargo transshipment from Ukraine via its ports
Activity of Iran's Aras Free Zone skyrockets, compared to last year
Talks over Energy Charter Treaty's modernization to start soon (PHOTO)
Turkmenistan to build new plants for mineral fertilizer production
Iran reveals its COVID-19 data for July 4
Georgia sees increase in prices of real estate for rent in suburbs
Suicide car bomber hits checkpoint at Somalia's Mogadishu port
Shell CEO does not rule out moving headquarters to Britain
Fitch Ratings: Growth in Azerbaijan's insurance sector depends on regulated tariffs
Weekly review of Azerbaijan's precious metals market (June 26-July 3)
Oil transportation via Ceyhan-Kirikkale pipeline through Turkey up
Lithuania considers transport co-op with Kazakhstan among top priorities
Samarkand Automobile Plant in Uzbekistan to produce ambulances
Uzbekistan increases number of refrigerated cargo wagons
Indonesia reports 1,447 new coronavirus infections
Overall production up in Turkmenistan with major part falling on private sector
China allocates humanitarian aid to Kazakhstan, backing anti-COVID battle
Turkmenistan reveals its oil production data for 1H2020
Iran's government stays committed to raising production
Uzbekistan receiving humanitarian aid from US charities
Weekly review of Azerbaijani currency market (June 26-July 3)
Azerbaijan's Bank BTB increases its total liabilities
Georgian municipality reveals volume of potato harvest
India coronavirus cases hit record high amid monsoon rains
Litzenberger: US, Azerbaijan share important partnership (VIDEO)
Russia's coronavirus cases near 675,000, death toll passes 10,000
Australia's Victoria reports 108 new coronavirus cases, biggest jump since March
UNEC brand was also known in Estonia
Uzbekistan to direct IDA's loan on urgent COVID-19-response measures
Least attractive Kazakh economy sectors for French companies revealed
Turkmenistan's cargo transportation for 1H2020 revealed
Turkmenistan's GDP increases in 1H2020
Tokyo new coronavirus infections over 100 for third day
Seven police hurt in violence at London music event
Europe to supply Asian countries with olive products through Georgia
Georgia reports new cases of coronavirus
Brazil health regulator Anvisa allows Chinese COVID-19 vaccine trial
Kazakhstan's import of Canada-made goods nearly twofold down
Armenia violates ceasefire with Azerbaijan 42 times
Azerbaijan's SOCAR Polymer planning to produce next polypropylene batch
Aeromexico shares rise for second day despite missed debt payment
Kazakhstan’s oil producing company to buy pipes via tender
Kyrgyzstan’s COVID-19 cases reach 7,094
Kazakhstan confirms 1,644 new coronavirus cases over past 24 hours
Israeli PM asks citizens to follow COVID-19 restrictions due to surge in morbidity
Air France set to cut more than 7,500 jobs
Turkey nearly halves leather export to Uzbekistan
Iran cuts import of electrical goods from Turkey
Iran among top three countries in world for caviar producing, sturgeon farming
Brazil reports over 1.5 mln COVID-19 cases, with 63,174 deaths
Geostat reveals producer price indices for services in Georgia
Chinese mainland reports 3 new confirmed COVID-19 cases
Japan's Cokey Systems talks its activities in Uzbekistan
4 dead in small plane crash in Utah mountains
All news