Oil prices tend to rise on Friday, the first day of May, when the global agreement to reduce crude production will enter into force.
After a month that will remain present in history during which the price of American light oil fell to below zero, economists seem more optimistic about the possibility of economies recovering, even if the demand is still far from reaching the size of supply.
At the beginning of the session in Asia, the West Texas Intermediate crude barrel for June delivery gained about five percent and reached $ 19.57, after recording a gradual increase of 25 percent during two consecutive days.
As for the barrel of Brent North Sea oil for July delivery, it rose 2.4 percent on the first day of pricing, after June contracts ended away from the panic in West Texas two weeks ago.
The week’s gains and those of stocks also resulted, in part, from encouraging signs in the fight against the emerging corona virus, with a daily low number of deaths.
Oil investors are also monitoring various national plans to lift the isolation measures that are supposed to allow transportation to restart.
“Demand appears to have reached its lowest level as many large economies are considering an exit strategy or a new normal life, and the lifting of strict restrictions linked to stone,” said Stephen Ennis, analyst at Axecorp.
The agreement signed by the Organization of Petroleum Exporting Countries (OPEC) and its partners to reduce global production by ten million barrels per day will enter into force on Friday.
But the Citycorp group warned that every moment of stability could be replaced by sudden fluctuations, with warehousing capacities reaching their maximum in the United States and the possibility of rapidly changing demand.