WTI oil prices rally on gasoline demand and hopes of output cuts’ extension

• WTI crude oil rises 5% to reach $34, right below two-month highs.
• Oil prices appreciate buoyed by signals of higher gasoline demand.
• Speculation of OPEC+ agreement to extend output cuts supports the oil rally.

WTI crude oil prices have appreciated more than 5% on Thursday to reach $34 and approach two-month highs. Investors’ optimism about an increase of gasoline demand and speculation of an OPEC+ deal to extend output cuts are driving crude prices higher

Oil advances on hopes of an increase of gasoline demand

The first signs of a higher demand for US gasoline, as the main economies re-open after the coronavirus pandemic, have triggered a solid rebound on crude prices. The market has shrugged off the unexpected increment on US crude inventories and the concerns about the consequences of US-China tensions.

Furthermore, market speculation about an agreement between OPEC+ countries to extend the output cuts until the end of the year has supported WTI’s positive tone.

Likewise, Brent crude, the European benchmark has risen another 5%, to pare Wednesday’s losses, reaching session highs at $35.95, only $1 below two-month highs.

WTI oil key levels to watch