Crude oil future prices rose to ten-week high on Tuesday as the market was optimistic that demand would rebound after the US and some European countries decided to reopen their economies. Demand outlook continues to improve after all 50 US states have eased restrictions and allowed some non-essential travel and trade, although containment measures remained in place in major metro areas, including Los Angeles and New York City.
On Tuesday, Japan ended its state of emergency for all of its prefectures, including the capital Tokyo. In the UK, Prime Minister Boris Johnson said that non-essential businesses in England could resume activities on June 15. In China, refiners have generally boosted their crude throughput as domestic demand increased.
NYMEX July WTI gained $1.10 to $24.35/barrel, while ICE July Brent rose 64 cents to $36.17/barrel. Both front-month futures were last higher on March 10. NYMEX WTI has spiked 170% from a month earlier. Analysts said that if prices were stable at the $30s/barrel, producers could pump from selected shut wells again and even drill and complete new wells for future production.
