Oil Up, But Fuel Demand Concerns Persist Over Continued COVID-19 Surge in India
By Gina Lee
Investing.com – Oil was up Tuesday morning in Asia, bouncing back from the previous session’s drops. However, investors remained concerned about fuel demand recovery as the number of COVID-19 cases in India, the world's third-biggest crude importer, continues to increase.
Brent oil futures gained 0.48% to $65.34 by 12:05 PM ET (4:05 AM GMT) and WTI futures were up 0.48% to $62.21.
"There are clearly some concerns around the demand outlook, particularly over how the COVID-19 situation is developing in India," ING Economics analysts told Reuters.
The Indian government also sprang into action, ordering its armed forces to deal with COVID-19 as the number of cases topped 17.3 million as of Apr. 27, according to Johns Hopkins University data.
On the supply front, the Organization of the Petroleum Exporting Countries and allies (OPEC+)’s joint technical committee has maintained a forecast of increasing oil demand in 2021.
However, the committee reportedly remains concerned about the surge of COVID-19 cases in India and elsewhere, as it prepares to discuss policy on production at its Wednesday meeting.
"The big question is whether OPEC+ feels that the situation is bad enough to alter its planned production easing from May 1," said ING.
"We still expect that the group will announce no changes to its plan when they meet tomorrow."
Investors also await U.S. crude oil supply data from the American Petroleum Institute, due later in the day.
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