Prices for petroleum were steady on Wednesday as support coming from forecasts of a recovery in global fuel demand was tempered by a surge in India’s coronavirus cases and rising U.S. crude inventories.
Brent crude futures gained 25 cents, or 0.38%, to trade at $66.67 U.S. per barrel, after rising 1.2% on Tuesday.
U.S. West Texas Intermediate crude futures advanced 35 cents, or 0.56%, to $63.32 a barrel, after gaining 1.7% in the previous session.
A decision by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to stick to plans for a phased easing of oil production restrictions from May to July underscored the group’s confidence in a recovery in global demand.
U.S. bank Goldman Sachs said on Wednesday it expected "the biggest jump in oil demand ever, a 5.2-million-barrels-per-day (bpd) rise over the next six months" as vaccination campaigns accelerate in Europe and demand for travel climbs.
Goldman said the easing of international travel restrictions in May would hike jet fuel demand by 1.5 million bpd.
In a report by OPEC+ experts, the group forecast global oil demand in 2021 would grow by 6 million bpd, after demand plunged by 9.5 million bpd last year.
In India, the world’s third-largest oil consumer, the COVID-19 death toll surged past 200,000 and infections have climbed by more than 300,000 cases a day for a week.
The American Petroleum Institute reported crude stocks rose by 4.319 million barrels in the most recent week, sources said, a bigger build than expected.
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