Finally a sigh of relief breathed by oil markets on Tuesday amid the signs of global abundance, after Brent crude, the Middle East benchmark, traded above $30.
Media reports said, after witnessing heavy fallout previous month, Brent crude, the Middle East benchmark, traded above $30 a barrel for the first time. It rose by $3.77, or 13.9 percent, to close at $30.97 a barrel. West Texas Intermediate, the US standard that collapsed into negative territory last month, gained $4.17, or 20.5 percent, to settle at $24.56 a barrel.
Earlier a fresh trade spat between United States and China, resulted in another fallout, with Brent Crude reduction at $26.37.
Brent crude was down 7 cents, or 0.3 percent, at $26.37, while US West Texas Intermediate (WTI) crude fell 39 cents, or 2 percent, to $19.39.
While global oil demand is expected to recover modestly from April lows as countries ease some lockdown measures, the excess amount created over months in storage facilities will loom over the markets. The Wall Street bank raised its 2021 forecast for global benchmark Brent to $55.63 per barrel from $52.50 earlier. The bank hiked its estimate for WTI to $51.38 a barrel from $48.50 previously.
Oil prices recovered some of their losses after US Treasury Secretary Steven Mnuchin said he expected China to make good on its trade agreement with the US. He also said he expected oil markets to rebound, and that the Trump administration was looking for more storage capacity. Earlier President of the United States Donald Trump has given an ultimatum to Saudi Crown Prince Muhammad Bin Salman, either to cut oil or lose US military support.