Oil prices rose on Tuesday, with OPEC+ predicting a strong global recovery this year, even as the spread of COVID-19 in India and other countries affects near-term demand expectations. OPEC+'s technical committee increased its forecast for demand growth in 2021 but warned that new outbreaks of the virus in India, Japan, and Brazil could hinder the recovery in oil demand.
OPEC Secretary-General Mohammad Barkindo stated on Monday that there are "positive indicators" in the global economy, but he also pointed out factors in the oil market that require continuous vigilance. West Texas Intermediate for June rose by 0.92% to $62.48 per barrel on the New York Mercantile Exchange at 5:40 GMT.
Brent crude for June increased by 0.60% to $66.62 on the ICE Futures Europe exchange after losing 0.7% in the previous session. OPEC+'s technical committee anticipates that oil consumption will rise by 6 million barrels per day this year compared to last year, according to delegates who attended the session on Monday. They noted that most of the fuel stocks accumulated during the pandemic will be depleted by the end of this quarter.
The recovery has been driven by strong rebounds in China and the United States, while some positive indicators are emerging in parts of Europe, and South Korea's economy recovered at a stronger-than-expected pace in the last quarter, with investments rebounding alongside export growth.
