U.S. oil prices bounced on Wednesday, recovering some of its losses as U.S. reserves filled slower than anticipated. The lockdowns lifted in some European countries and U.S. cities also helped prices recover as the market hoped for a rise in demand.
U.S. West Texas Intermediate crude futures rose 15.4%, or $1.90, at $14.24 per barrel, nursing 27% of its losses this week.
Brent crude futures jumped 4.6%, or 93 cents, at $21.39 per barrel.
According to the American Petroleum Institute, crude inventories increased by 10 million barrels, bringing it to 510 million barrels on April 24. This was slightly lower than the 10.6 million barrels increase earlier anticipated.
U.S. shale producers are expected to cut output to 300,000 bpd for May and June, slowing down the filling of stockpiles.
That would add to the 9.7 million barrels output cut by OPEC and its allies including Russia set to materialize on May 1.
Hopes for a recovery in demand further supported oil prices after the market rushed to sell June contracts when WTI plunged last week.
Analysts are expecting the WTI to average $30 per barrel in 2020 and $35 in 2021, adding that there will be enough supply to keep prices low until 2021.