The front-month contract for WTI Crude, which is set to expire on Tuesday, gained 68 cents, or 2.14%, to settle at $32.50 per barrel. The July contract, which was trading at vastly higher volumes, traded slightly higher at $31.89 per barrel. International benchmark Brent Crude shed 16 cents, or 0.46%, to settle at $34.65 per barrel.

“The market sees both forces aligning: the cuts OPEC+ promised are materializing and other non-member production shut-downs are also really helping to limit the oversupply,” said Paola Rodriguez Masiu, senior oil markets analyst at Rystad Energy. “Meanwhile, lockdown measures are removed globally and the economy needs fuel to restart.” But global demand recovery is expected to be slow as some restrictions remain and there is a significant risk of repeat outbreaks and lockdowns.

Consultants the Eurasia Group urged caution on expectations for higher oil consumption, citing “a global recession, cautious consumers, and a later and potentially worse peak of the coronavirus outbreak in emerging markets such as Latin America, Africa, and South Asia”. But amid signs of rising demand for crude and fuels, there was little sign of a repeat of the historic plunge below zero seen a month ago on the eve of the May contract’s expiry.

U.S. production is also falling, with crude output from seven major shale formations expected to fall to 7.822 million barrels per day in June, the lowest since August 2018, according to the U.S. Energy Information Administration. A recovery in fuel demand in India also gathered momentum in the first half of May.