2021.04.2910:19:00UTC+00Oil Extends Gains On Demand Recovery Hopes

Oil prices rose over 1 percent on Thursday to extend gains from the previous session, as hopes for an increase in energy demand in key markets offset renewed concerns about a resurgence of coronavirus cases in some countries, especially India.

Brent crude futures for July settlement climbed 1.2 percent to $67.55 per barrel, while WTI crude oil futures were up 1.1 percent at $64.57.

A combination of declining U.S. petroleum product supplies, signs of stronger demand and a brighter outlook for COVID vaccinations buttressed expectations for a revival in global consumption.

Fuel demand is expected to get another boost as China breaks for a five-day May Day holiday starting on May 1.

Investment bank Goldman Sachs expects global oil demand to realize the biggest jump ever over the next six months as vaccination rates accelerate.