The Omani crude for August delivery was traded at Dubai Mercantile Exchange for $44.07 per barrel on Tuesday.
Crude oil has rebounded to $40 per barrel and hoping to stay there. Some analysts have come out with more bullish forecasts for the near-term, but plenty of risks remain, the oil price reported.
“Good production discipline on the part of OPEC+ coupled with a massive involuntary reduction in production in the US on the one hand, plus the rapid recovery of demand on the other, have caused supply surpluses to be eroded significantly more quickly than anticipated,” Commerzbank wrote in a note on Monday.
In the US infections of the virus increased over the weekend, while places outside of the US also saw cases climb. South Korea on Monday declared itself in the midst of second-wave while Germany also saw its rate of infection rise as the World Health Organization reported a record increase in global cases on Sunday.
Experts added that oil may show improved uptake as economies see some signs of recovery from the pandemic, even if infections have been rising. Agencies.