2020.07.1019:23:00UTC+00Crude Oil Futures Settle Sharply Higher

Crude oil futures settled higher, rebounding well after recent losses and a weak spell Friday morning, thanks to an upward revision energy demand forecast by the International Energy Agency (IEA).

Prices drifted lower earlier in the day amid lingering uncertainty about energy demand outlook in the wake of the relentless surge in coronavirus cases across U.S. and several other countries.

The announcement from Libya National Oil Corporation that it has lifted its force majeure on all oil exports after a half-year blockade by eastern forces also weighed on oil prices early on in the session.

West Texas Intermediate Crude oil futures for August ended up $0.93 or about 2.4% at $40.55 a barrel, well off an early low of $38.54 a barrel.

WTI crude futures for August lost about 0.2% in the week.

Brent Crude oil futures moved up $0.90 or about 2.2% to $43.25 a barrel.

The IEA says in its report that the worst of the oil market downturn from the coronavirus pandemic has passed. The agency has raised its demand forecast to 92.1 million barrels per day, up 400,000 barrels per day from its outlook last month, citing a smaller-than-expected second-quarter decline.

A report from Baker Hughes said U.S. oil rigs fell by four to 181 this week, their lowest since June 2009, while gas rigs dropped by one to 75, matching its record low hit a couple of weeks ago. Oil rigs count fell by 3 last week.

The total active U.S. rig count, meanwhile, fell by 5 to 258, according to Baker Hughes' report.