Oil rose in New York on optimism over China’s recovery from a virus-led demand crash and with the U.S. set to avoid a national lockdown to curb the spread of Covid-19. China’s oil processing rebounded in October to match a record, as the world’s largest importer continues to lead the recovery in consumption. Indian fuel usage also posted a year-on-year increase in October, for the first time since February.
The robust recovery in Asia is supporting the oil market just as the U.S. and Europe face a downturn due to a resurgent virus. Brent’s nearest time spread — a gauge of market health –reached its strongest since mid-July on Monday, the latest sign that the recovery East of the Suez Canal is offsetting weakness in the West.
“The Brent curve structure continues to firm, global oil inventories continue to decline, a very promising vaccine is on the horizon” and OPEC+ will likely keep supporting the oil market, said Bjarne Schieldrop, chief commodities analyst at SEB AB.
PRICES
West Texas Intermediate for December delivery gained 1.9% to $40.91 as of 10:30 a.m. London
