Oil Extends Gain With Market Eying Summer Demand Recovery - Bloomberg

Oil Extends Gain With Market Eying Summer Demand Recovery - Bloomberg

PRICES

West Texas Intermediate for June delivery rose 78 cents to $66.15 a barrel at 12:15 p.m. in New York Brent for July settlement gained 69 cents to $69.40 a barrel Oil advanced as rising optimism around a demand recovery in regions such as the U.S. offset Covid-19 flare-ups in parts of Asia. Futures in New York climbed as much as 1.4% on Monday. The U.S. and China, along with parts of Europe, are rapidly recovering from the pandemic as vaccinations accelerate. In the U.S., passengers at airports jumped to the highest since the pandemic began. However, Indian fuel demand continued to weaken in the first half of May. The oil market’s structure is showing signs of strength. The premium for global benchmark Brent’s nearest contract over the next one has started widening again, signaling a tightening market. “More reopenings in Europe, consumer confidence and travel normalizing” are all boosting confidence in a demand rebound, said Phil Streible, chief market strategist at Blue Line Futures LLC in Chicago. In the U.S., “more and more people are getting vaccinated and those people are now traveling.”