Oil prices rise on supply cuts, improving demand

On Tuesday, Oil prices rose, with Brent crude rising above $40 a barrel, as the IEA increased its oil demand forecast for 2020 and as record supply cuts supported.

In its monthly report on Tuesday, the International Energy Agency (IEA) forecast oil demand at 91.7 million barrels per day in 2020, 500,000 bpd higher than its estimate in May’s report, citing higher than expected consumption during the lockdowns.

Brent crude LCOc1 rose 77 cents, or 1.94%, at $40.49 a barrel by 0918 GMT. U.S. oil CLc1 gained 61 cents, or 1.64%, to $37.73 a barrel.