Brent crude oil surges to $31.55, oil demand picks up

Crude oil prices gained today, after China’s impressive export data was released hours ago. China’s exports surged by 3.5% in April from a year earlier. The figures from the largest buyer of crude is further indication that the oil market is on a rebound, though slowly.

Brent crude gained over 5% at $31.43 a barrel as at 2.42 pm local time, after losing about 4% yesterday.

Crude oil prices rallied throughout last week, with Brent crude breaking the resistant level of $30 per barrel amid signs that oil demand was improving, after countries across continents eased the lockdowns put in place to curb the Coronavirus pandemic.

However, the continual pumping of crude into storage tanks has resulted in a distortion between demand and supply.

“A shift in market sentiment was lifting prices earlier this week, but the physical overhang does not want to go away just yet,” Citi Research told Reuters.

Edward Moya, a senior market analyst at OANDA, told Reuters the futuristic price of crude. He said “Oil prices should eventually settle on a wide $10 range, with WTI crude’s upper boundary being around the $30 a barrel level, while Brent crude targets the $35 a barrel level.”

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