The price of brent crude oil rose about one percent on Tuesday, moving closer to the $63 per barrel mark. North American WTI oil also healthier similarly. Commodity markets reacted to positive economic data from the U.S. and China.
Oil responded to favorable news from the service sector in the United States and China. Indeed, activity in services in the US recorded its highest level historically in March, and China’s highest sales increase in the last three months. The black gold market also welcomed a report from the British Isles under which some anti-epidemic measures will be dissolved in England on April 12. Here, too, it should be felt significantly by the service sector.
The oil market is gradually recovering from the results of the OPEC+ Group meeting in early April. Representatives of the Member States agreed to increase oil production by 350 thousand barrels per day in May, an additional 350 thousand barrels per day in June, and in July oil production will increase by 400 thousand barrels per day. OPEC+ has decided to do so because of the recent oil recovery to the $70 per barrel threshold. Moreover, the group expects oil demand could start rising in the rest of the year, which should keep its brent oil price above $60 a barrel.