After Brent crude, the Middle East benchmark, traded above $30 – a breath of relief – on Tuesday amid signs of global abundance.
Media reports said Brent crude, the Middle East standard, traded for the first time over $30 a barrel after experiencing significant backlash of the previous month.
It rose by $3.77 to close at $30.97 a barrel, or 13.9 per cent. West Texas Intermediate, the US benchmark that crashed last month into negative territory, gained $4.17, or 20.5%, to settle at $24.56 per barrel.
Earlier a fresh trade spat between the U.S. and China resulted in another backlash, with a $26.37 cut for Brent Crude.
Brent crude was down 7 cents, or 0.3%, at $26.37, while US West Texas Intermediate (WTI) crude was down 39 cents, or 2%, to $19.39, respectively.
Although global oil demand is expected to recover modestly from lows in April as countries encourage some lockdown steps, the excess amount generated in storage facilities over months will be increasing across the markets.
For the global benchmark Brent, the Wall Street bank increased its 2021 outlook to $55.63 per barrel from $52.50 before. The bank previously hiked its forecast for WTI from $48.50 to $51.38 a barrel.
Oil markets recovered some of their losses after US Treasury Secretary Steven Mnuchin said he expected China to make good on its US trade pact.
He also said he anticipated a recovery in oil prices, and that the Trump administration was searching for more storage space. Earlier US President
Donald Trump has given Saudi Crown Prince Muhammad Bin Salman an ultimatum to either cut off oil or lose US military support.