Oil demand is picking up but will be muted this summer: Analyst
The Schork Group principal Stephen Schork argues oil demand is picking up but that it is partially due to barrels moving into the Strategic Petroleum Reserve.
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LONDON (Reuters) – Oil prices, which have been driven higher for the past four weeks, were steady on Monday, with holidays in Singapore, London and New York dampening trade, as rising concerns over demand recovery offset supply cuts.
Brent had eased by 5 cents, or 0.14% to $35.08 a barrel by 1014 GMT, while U.S. oil gained 14 cents, or 0.42% to $33.39 a barrel. Both are down around 45% so far this year.
"Uncertainty around the current travel patterns in the U.S. is so great that the American Automobile Association did not release its Memorial Day travel forecast,'' Bjornar Tonhaugen, head of oil markets at Rystad Energy, said.
MORE STATES LOOSENING CORONAVIRUS RESTRICTIONS THIS WEEK
Rising tensions between the United States and China, the world's largest oil consumers, over moves by Beijing to impose security legislation on Hong Kong also fueled concerns about the outlook for demand.