Oil Prices Surge above 2% on Tighter Supplies & Eased
Lockdowns
23 June
2020
Oil prices surged above 2% on Monday session backed by tighter crude
supplies from two major producers, while lockdowns connected to
coronavirus continue easing despite record increases in global
infections.
Brent crude ended the trading session up 89 cents (2.1%) to settle
at $ 43.08 a barrel.
WTX intermediate crude contract for August trended up 2.3% (9 cents)
to settle at $ 40.73 per barrel.
Prices boosted in view of data showing plummeting US and Canadian
rigs, a future supply indicator, count falling to a new lower level last
week.
Brent crude and US crude rose last week supported by recovery in
demand on fuel as well as eased lockdowns and resuming the economic
activity.
The prospect of greater compliance by OPEC and Allies, a group known
as OPEC+ with coordinated production cuts to balance the market also
supported oil prices.
By far, OPEC+ did not decide whether to extend record supply cuts of
9.7 million barrel a day to a fourth month so it last till end of
August.