Crude oil maintains upward momentum despite fresh coronavirus fears

The International Energy Agency (IEA) has predicted global oil demand and supply were set to rebalance in the second half of the year and that producers may then need to pump an additional 2 million barrels per day (bpd) to meet the expected demand.

Crude oil prices jumped on revised oil demand forecasts on Wednesday despite concerns over rising coronavirus cases and vaccine rollouts. Brent crude futures rose $1.01, or 1.59%, to $64.68 a barrel by 1241 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 88 cents, or 1.46%, at $61.06 after rising more than a $1 in earlier trade. "The main price driver this morning is the monthly IEA report that foresees a significant rise in global oil demand in the second half of the year. This, in turn, will increase demand for OPEC oil and deplete worldwide and OECD inventories," said PVM Oil Associates analyst Tamas Varga.