Monday, 26 October 2020

Oil extends gains as virus-hit economies ease curbs

AFP / File Photo

SINGAPORE: Oil extended gains in Asia Tuesday on signs of improving demand as coronavirus-hit major economies begin to ease strict curbs and as top producers slash output.

US benchmark West Texas Intermediate for June delivery was up 7.26%at $21.87 a barrel in morning trade.

The contract ended about three percent higher in New York overnight, rebounding from losses earlier in the day.

International benchmark Brent crude for July delivery was changing hands at $28.25 a barrel, up 3.86 percent.

“Oil fundamentals are finally showing signs of improvement, and prices are reacting positively,” said AxiCorp global markets strategist Stephen Innes.

“Supplies have started to decline quickly, with signs of demand improving even as major economies are in the nascent stages of reopening.”

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