Crude oil increased by 1% on Monday by cause of tight supply from major producers, but the percentages can be higher if markets are not too worried about a second wave of outbreak, thus stalling fuel demand recovery. Brent crude oil gained 1.8% or $0.75 to $42.94/barrel by 1819 GMT. The WTI crude contract for August hiked $0.50 or 2% to $40.64/barrel.
Andy Lipow, president of consultants Lipow Oil Associates said those prices were boosted by the slumping U.S. and Canadian oil rig count, and the economy reopening throughout the world bringing back lost demand, resulting in the U.S. contracts and Brent gained about 9% in the previous week.
Although, new counts of active virus cases in the United States and other countries have kept prices from moving higher. As South Korea announced that the country is in the midst of a second wave of the outbreak, WHO also reported a significant rise in global cases with the biggest gains coming from North and South America.
Bank of America (BofA) cancelled oil price global forecast for 2020 in reason of uncertainty in demand as long as the OPEC+ output cut deal curtails supply has not been decided whether to sustain the curb or loosen it after August.
