Oil futures traded higher Tuesday, encouraged by continued cuts in crude production and a pickup in demand as pandemic-related lockdowns ease around the world.
“Supply and demand are both trending bullish for prices of late, with recent estimates citing a drop of 13-15 [million barrels per day] in terms of global production,” said Robbie Fraser, senior commodity analyst at Schneider Electric.
Much of that figure leans on the agreement by the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, to slash 9.7 million barrels a day of output, while the U.S. “has also seen steep economic-driven declines of more than 1.5 mmbbl/d,” Fraser said in a daily market report.
