Oil prices have rebounded in recent weeks on anticipation of improved demand after the coronavirus pandemic sapped worldwide consumption roughly 30%. Overall investment is dropping and U.S. production cuts are balancing out the supply glut, but demand still has not bounced back entirely. On its second to last day as the front-month, Brent Crude for July delivery rose 55 cents, or 1.6%, to settle at $35.29 a barrel. WTI Crude rose 90 cents, or 2.7%, to settle at $33.17 per barrel.
Uncertainty about Russia’s commitment to continuing deep output cuts kept the price gain in check. Saudi Arabia and other OPEC producers are considering extending record high output cuts until the end of 2020 but have yet to win support from Russia, according to OPEC+ and Russian industry sources. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group dubbed OPEC+, meets on June 9 to discuss continuing the April supply deal that cut 9.7 million bpd from the market. Markets are also concerned that Washington could slap trade sanctions on China due to Beijing’s move to impose a new security law on Hong Kong. The United
States and other nations said this would threaten freedom and breach a 1984 Sino-British agreement on the autonomy of the former UK-colony.