Oil up 3% as countries ease lockdowns, production falls - Reuters

Oil up 3% as countries ease lockdowns, production falls - Reuters:

Oil was up 3% on Monday as more countries announced they would begin easing coronavirus lockdowns and as crude supply cuts by the world’s top producing nations and companies take hold.

Worldwide fuel demand fell by an estimated 30% in April largely due to stay-at-home orders, and weak consumption is expected to overhang the crude market for months, even as major world oil-producers reduce output as of May 1. However, analysts have said that swift action by those parties could help reduce the supply glut more quickly.

“The market continues to price in the idea that things are improving,” Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut.

Brent crude LCOc1 settled at $27.20 a barrel, up 76 cents, or 2.9%, while U.S. West Texas Intermediate (WTI) crude CLc1 gained 61 cents, or 3.1%, to $20.39 a barrel.