Oil climbs as International Energy Agency boosts demand forecast

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Oil climbs as International Energy Agency boosts demand forecast

On Friday, both US and UK crude futures scheduled to be expired on July 20 surged as much as 2 per cent after the Paris-based International Energy Agency (IEA) had boosted up its 2020 demand forecast for crude oil, nonetheless, a record spike in pandemic cases in the United States had been curbing out demand outlook, eventually weighing on the crude oil futures’ prices despite a robust turnaround in industrial activities of the bloc and China.

In point of fact, according to the IEA (International Energy Agency) crude oil demand forecast for 2020 that released on Friday, the Paris-based intergovernmental autonomous organization that was formed in 1974, a year after the great oil crisis of 1973, in order to maintain international co-operation on supply and demand of energies and related by-products, had raised its crude oil demand forecast for 2020 to 92.1 million barrels per day, up from a 400,000 barrels per day a month earlier.

Oil prices find support as US energy firms again cut the number of drilling rigs

Apart from a robust upswing in crude oil demand forecast for the rest of the year that sets sails over a fairly upbeat demand outlook in China and Central Europe following the pandemic-led slump, both US and Brent crude futures’ prices had also found support following reveal of a report that the US energy firms had again slashed the number of oil and natgas drilling rigs, which had been operating at a record low capacity for two and a half months.

Citing statistics, on Friday’s commodity market closure, UK crude settled down 2 per cent higher to $43.24 per barrel, while the US West Texas Intermediate crude futures surged 2.4 per cent to $40.55 a barrel.

On the week, the US WTI crude futures’ prices were little changed, while the UK crude had clocked a weekly percentage gain on 1 per cent. Meanwhile, adding that a spike in pandemic cases could cause slight disruption in crude oil demand outlook over the coming months, IEA said in the statement, “While the oil market has undoubtedly made progress ...

the large, and in some countries, accelerating number of COVID-19 cases is a disturbing reminder that the pandemic is not under control.