Oil up as OPEC raises 2021 demand growth forecast on hope pandemic wanes

Oil rose with OPEC boosting its expectation for this year’s demand recovery even as the pandemic continues to surge in many parts of the world.

Futures rose 1% in New York, trading just above $60 a barrel, a level around which they have gyrated for almost four weeks. OPEC raised its forecast for oil consumption by 190,000 barrels a day for 2021, though lowered its outlook for the second quarter.

Pockets of higher oil consumption are emerging worldwide as vaccinations climb. In the U.S., government figures showed miles traveled on highways over the Easter holiday period were the highest since March 2020. Inflation data showed the biggest increase since 2012 as signs of an economic rebound grow.