Oil prices hold steady on signs of demand recovery

Oil prices hold steady on signs of demand recovery

Oil prices held steady on Tuesday, remaining unchanged from gains in the previous session after demand for fuel showed signs of picking.

Brent crude rose by 6 cents to $43.14 per barrel at 0046 GMT after previously gaining 2.1% on Monday. U.S. oil rose by 8 cents to $40.81 per barrel after having risen by 1.8% in the previous session.

Oil prices were further boosted as the members of the Organization of Petroleum Exporting Countries and its allies (OPEC+) complied with record supply cuts in a bid to balance the market.

The reopening of several U.S. states, after the months-long lockdowns also supported the demand for fuel.

Meanwhile, oil and gas drillers in the U.S. and Canada lowered the number of rigs in operation to record lows, making it difficult for a recovery in output despite the increase in demand.  

The U.S. halted 10 out of their 199 oil rigs last week, making it the lowest number in operation since mid-2009, according to data from energy services firm Baker Hughes Co.

Operations were also halted for 3 out of 78 gas rigs, making it the lowest on record according to data as far back as 1987.

Something went wrong