Brent crude futures rose 60 cents, or 1.4%, to $42.32 a barrel by 0916 GMT. U.S. West Texas Intermediate (WTI) crude futures rose 63 cents, or 1.6%, to $40.06 a barrel.
China, the world’s prime crude oil importer, took in 11.eight million barrels per day (bpd) of oil in September, up 5.5% from August and up 17.5% from September final yr, customs knowledge confirmed on Tuesday.
“Currently, oil demand is driven primarily by China,” Commerzbank stated.
The International Energy Agency (IEA) – which advises Western governments on vitality coverage – stated in its World Energy Outlook that in its central situation a vaccine and therapeutics might imply the worldwide economic system rebounds in 2021 and vitality demand recovers by 2023.
But underneath a “delayed recovery scenario”, the timeline is pushed again two years, it stated.
“The era of global oil demand growth will come to an end within the next 10 years, but in the absence in a large shift in government policies, I don’t see a clear sign of a peak,” IEA chief Fatih Birol advised Reuters.
Lockdown measures have been being tightened in Britain and the Czech Republic to battle rising circumstances of COVID-19, and French Prime Minister Jean Castex stated he couldn’t rule out native lockdowns.
Oil costs are additionally going through strain from the availability aspect.
Workers have been returning to U.S. Gulf of Mexico platforms after Hurricane Delta and Norwegian staff to offshore rigs there after ending a strike, whereas OPEC member Libya on Sunday lifted pressure majeure at its Sharara oilfield.
Libya’s complete output on Monday was anticipated to hit 355,000 bpd. A full return of the 300,000-bpd Sharara area would almost double that.