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Oil prices rise with hopes for demand rebound on easing coronavirus curbs

Oil prices climbed on Friday as countries including Australia moved ahead with plans to relax economic and social lockdowns put in place to halt the coronavirus pandemic, kindling market hopes for a boost in demand for crude and its products, Reuters reported.

Brent crude LCOc1 was up by 87 cents, or 3%, at $30.33 a barrel by 0630 GMT, having fallen nearly 1% on Thursday.

U.S. oil CLc1 gained $1.12, or 4.8%, to $24.67 a barrel, after a decline of nearly 2% in the previous session.

Both contracts are heading for a second week of gains after the lows of April, when U.S. oil crashed below zero, with Brent up around 15% for the week and WTI more than 24% higher.

However, crude is still being pumped into storage, raising the prospect that any gains prompted by stronger demand will be capped.

On the supply side, North American oil companies are cutting production quicker than OPEC officials and industry analysts expected and are on track to withdraw about 1.7 million barrels per day of output by the end of June.

Prices moved higher later in the session after U.S. and Chinese officials discussed a trade deal agreed earlier this year before the coronavirus outbreak, with both sides agreeing to implement the agreement.

News.Az

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