Oil Rises With OPEC Expecting Demand Rebound to Absorb Output By Bloomberg – Investing.com

Oil Rises With OPEC Expecting Demand Rebound to Absorb Output By Bloomberg – Investing.com

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(Bloomberg) -- Oil closed at the highest in over a week after OPEC boosted its expectation for this year's demand recovery, while signs continue to emerge of rising fuel consumption in parts of the world.

Futures rose 0.8% in New York on Tuesday, settling above $60 a barrel for the first time since early April. OPEC raised its forecast for oil consumption by 190,000 barrels a day for 2021, though lowered its outlook for the second quarter.

Traders are also watching for signs of a robust demand rebound in the U.S., the world's top oil-consuming country. In New York City, toll bridges and tunnels are on pace for the busiest April in at least seven years. At the same time, inflation data showed the biggest increase since 2012 as signs of an economic rebound grow.

See also: NYC Toll Traffic Surges as Americans Return to Road

“There's going to be tremendous pent-up demand for crude,” said Edward Moya, senior market analyst at Oanda Corp. “There are some areas that are seeing cases trend higher, but the restrictions are going to be short-lived as vaccines get distributed.”

Prices were little changed after the American Petroleum Institute was said