OPEC forecast on Wednesday a gradual recovery in global demand for oil, which has been hammered by the coronavirus crisis, and said record supply cuts by producers were already helping to rebalance the market.
A person passes the logo of the Organization of the Petroleoum Exporting Countries in front of OPEC's headquarters in Vienna, Austria April 9, 2020. REUTERS/Leonhard Foeger
Oil prices collapsed as government lockdowns to limit the spread of the virus curtailed travel and economic activity. While some places in Europe and Asia have eased restrictions, concern over new virus outbreaks has kept a lid on prices. “The oil market was strongly supported by a reduction of the global crude oil surplus, thanks mainly to the historic voluntary production adjustment agreement,” OPEC said, adding it saw a “gradual recovery” in demand until the end of the year.
Brent crude LCOc1 was trading above $40 a barrel after the report’s release and is up from a 21-year low below $16 reached in April.
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