Crude Oil Futures Settle Higher

Crude Oil Futures Settle Higher

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 summer.

A weak dollar too contributed to oil’s uptick. The dollar index dropped to 90.87, giving up nearly 0.5%.

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 or about 1.4% at $64.49 a barrel.

Brent crude futures were up $0.78 or 1.18% at $67.54 a barrel a little while ago.

Preliminary data showed India’s diesel consumption in April fell 10% and petrol 4% from pre-Covid level of April 2020 due to new restrictions to block spread of the coronavirus. Sequentially, April diesel sales fell nearly 2% from March, when consumption had jumped 10% from February to 95% 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.