FXStreet reports that the crude oil price gained yesterday, as supply cuts deepened amid suggestions that demand was recovering strongly, strategists at ANZ Bank apprise. 

“Russia reached its target under the OPEC+ supply agreement, reducing output by 2mb/d, according to RIA Novosti. The Russian oil ministry also said that global supply had fallen by 15mb/d and that it expects a balanced market as early as June.” 

“The IEA pushed back on the idea that global oil consumption had already peaked. Executive Director Birol said that a sustained economic recovery and low oil prices would take oil demand back to where it was before the pandemic, and beyond.” 

“Brent crude oil futures push above $35/bbl. However, the gains were limited by geopolitical tension. The US blacklisted 33 Chinese firms from using US technology, which resulted in a rebuke from the Chinese foreign ministry. China’s Foreign Minister Yi suggested some in the US were pushing relations to a new ‘cold war’.”