Oil Prices Rise On Improving Economic Data
Posted: 30/Jun/2020

Oil prices edged higher on Monday, after bullish data from Asia and Europe, but sharp spikes in new coronavirus infections around the world tempered gains.

Brent crude rose 30 cents, or 0.7 per cent, to $41.32 a barrel while US crude, West Texas Intermediate (WIT) rose 44 cents, or 1.1 per cent, to $38.93 a barrel.

The recovery of economic sentiment in the euro zone intensified in June with improvements across all sectors, European Commission data showed on Monday. Overall sentiment rose to 75.7 points in June from 67.5 in May, though still short of expectations.

In China, profits at industrial firms rose for the first time in six months in May, suggesting the country’s economic recovery is gaining traction.

But fears of a second wave of the pandemic are keeping prices from going higher. The death toll from COVID-19 surpassed half a million people on Sunday, according to a Reuters tally.

Some states in the United States have re-imposed restrictions after jumps in cases. California ordered bars to close on Sunday following similar moves in Texas and Florida. Washington state and the city of San Francisco have paused their reopening plans.

“Whilst these localised measures on their own are unlikely to see any major immediate impact on demand, they do highlight the significant risk to gasoline demand,” JBC Energy said.

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