Oil has pulled back in recent weeks as the Covid-19 situation deteriorates in parts of the world ahead of a widely anticipated demand rebound once enough people are vaccinated.
West Texas Intermediate rose 0.2% after falling 1.6% on Tuesday. In the run-up to the closely-watched ministerial meeting, an OPEC+ panel revised down demand estimates for the year, delegates said. Still, the group also expects the surplus built up during the pandemic to be mostly gone within the next quarter.
Economic data and forecasts continue to point to a recovery, boding well for oil demand. In Asia, an official gauge of China’s manufacturing rose to 51.9 in March, topping estimates. Next week, the International Monetary Fund will upgrade its forecast for global growth — driven by better outlooks for the U.S. and China — while warning of new virus strains that may slow the rebound.
News Source : Hindustan Times