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.