Oil prices had their strongest session in over two months Tuesday, with West Texas Intermediate (WTI) light crude climbing 2% to $80 a barrel, and Brent crude rising 1.7% to $84 a barrel.
The surge in prices is attributed to the anticipation of increased demand with the start of the driving season and ongoing supply constraints. The market expects that OPEC+ will maintain its voluntary output cuts of 2.2 million barrels per day into the second half of the year during its upcoming June 2 meeting.
The United States Oil Fund (NYSE:USO), which tracks the WTI price, rose 3%, factoring in Monday’s oil performance while U.S. markets were closed for Memorial Day.
Energy stocks also rallied, with the Energy Select Sector SPDR Fund (NYSE:XLE) up 1%, outperforming all other S&P 500 sectors.
Chart: WTI Rebounds To $80, Breaking April-May Downtrend
Goldman Sachs Raises Long-Term Oil Demand Outlook
Goldman Sachs has revised its long-term global crude demand forecast upward, projecting continued growth until 2034, after which it expects oil consumption to plateau.
“Peak oil demand is still ...Full story available on Benzinga.com
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