Oil rises above $30 a barrel as coronavirus lockdown measures are eased

Oil rises above $30 a barrel as coronavirus lockdown measures are eased
Oil prices have climbed over the $30 mark for the first time in months.
2 min read
18 May, 2020
Oil prices are rising, as a number of companies cut production [Getty]
Oil climbed above the $30 a barrel mark on Monday for the first time in months, as demand in China for the commodity rises and coronavirus lockdown measures are eased.

The West Texas Intermediate (WTI) traded at $31.52 per barrel on Monday, after dipping below zero in April.

Brent July contracts also traded at $34.25 per barrel, with oil prices reaching their highest in two months, according to Forbes.

It comes after oil producers - including Saudi Arabia and the UAE - agreed to cut outflow to bolster prices, after WTI fell below zero sparking anger in the US.

The OPEC+ production cuts began on 1 May and have helped stabilise the market with prices rising steadily since.

Chinese demand for crude has also bolstered prices, after the coronavirus epidemic saw lockdown measures imposed on a number of cities in the world's most populous country.

Around half the world's population was at one-time affected by lockdown measures, leading to a surplus of oil in the market with storage facilities at full capacity.

Life is beginning to return to normal in many parts of the world, with pollution levels in Chinese cities said to be returning to pre-coronavirus crisis levels.

Although there are fears of a second wave of the virus and economies still reeling from the lockdowns - with millions unemployed - markets hope that increased demand for oil will push prices even higher.

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