Home / World News / Oil pips $40 for first time since March on OPEC cuts, demand recovery seen

Oil pips $40 for first time since March on OPEC cuts, demand recovery seen

Brent has more than doubled after hitting a 21-year low below $16 in April, when U.S. crude went negative

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OPEC+, encouraged by signs of recovery in the market, is considering extending the 9.7 million bpd cut beyond June

2 min read Last Updated : Jun 03 2020 | 4:43 PM IST

Oil rose on Wednesday, topping $40 a barrel for the first time since March, supported by lower U.S. inventories, expectations that Organization of the Petroleum Exporting Countries and other producers including Russia (OPEC+) will keep oil output cuts in place and signs of demand recovery from the coronavirus crisis.

Suggesting a supply glut is on the way out, the American Petroleum Institute said on Tuesday U.S. crude inventories fell by 483,000 barrels. The government's official supply report is due out later on Wednesday.

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Brent

Topics : Coronavirus Crude Oil Price Oil demand crude oil supply crude oil production

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