Crude oil futures closed notably higher on Monday amid hopes energy demand will increase in the U.S. following reopening of businesses in several parts of the country ahead of the northern hemisphere summer.
A weak dollar too contributed to oil’s uptick. The dollar index dropped to 90.87, giving up nearly 0.5 per cent.
A likely sharp drop in energy demand in India due to rising coronavirus infections capped oil’s rise.
West Texas Intermediate Crude oil futures for June ended up by 0.91 cents or about 1.4 per cent at 64.49 dollars a barrel.
Brent crude futures were up 0.78 cents or 1.18 per cent at 67.54 dollars a barrel a little while ago.
Preliminary data showed India’s diesel consumption in April fell 10 per cent and petrol 4 per cent from pre-Covid levels of April 2020 due to new restrictions to block the spread of the coronavirus.
Sequentially, April diesel sales fell nearly 2 per cent from March, when consumption had jumped 10 per cent from February to 95 per cent of the pre-pandemic level.
Analysts say that Covid-19 in India has not peaked and the country’s demand for transportation fuels will witness a sharper slump in May due to more restrictions.