Consumption may also get a boost when China breaks for an extended holiday on Saturday, with mobility expected to climb to a record.
is seeing many states ease restrictions and the opportunity for summer travel, and therefore petroleum demand, to have a significant rebound.
Oil’s rally took a pause in recent weeks with the resurgent pandemic in countries such as India, Brazil and Japan imperiling a worldwide return to normal demand.
The premium on near-term deliveries over future deliveries for commodities tracked by the Bloomberg Commodity Index has jumped to the highest in over 15 years, signaling immediate physical shortages across different markets, a managing director at Pacific Investment Management Co.
Royal Dutch Shell Plc’s profit rose more than expected in the first quarter, while Total SE also had a strong start to the year.
Still, COVID-19 hotspots do pose some short-term risks to a sustained price rally and are starting to show in gauges of market health.