Oil climbs with demand uptick as Saudi hints at an early recovery
OIL advanced as the combination of an uptick in demand and Saudi Arabia's pledged production cuts spurred optimism over a market recovery, reports Bloomberg
OIL advanced as the combination of an uptick in demand and Saudi Arabia's pledged production cuts spurred optimism over a market recovery, reports Bloomberg.
Futures in New York gained as much as 6.8 per cent this week and were set to close at the highest level in five weeks. Pockets of demand are starting to emerge in India and China and, while a huge glut remains, the increase in global stockpiles is slowing.
Saudi Arabia's plans to cut production by an additional one million barrels a day, has eased concerns over storage capacity hitting limits worldwide.
'The road to an oil price recovery will likely be choppy and plagued with stop-and-go rallies and selling cycles until some level of price certainty is restored,' said Roger Diwan, vice president of financial services at IHS Markit.