OPEC+ has confirmed it will pursue plans to increase crude oil production as previously agreed, although the resurgence of the Covid-19 case in some countries, particularly India has obscured the prospects for demand.
Through a recent statement, the Joint Technical Committee (JMMC) agreed that the deal should be continued to increase supply over the next three months.
However, oil prices were seen unimpressed by the latest OPEC+statement, even rising even higher.
This is because, OPEC+ also expressed their confidence in the recovery in stronger crude oil demand this year.
This was also supported by British oil and gas company BP Plc which also expects a stronger recovery for the oil market.
BP's chief executive, said that oil demand from the world's largest consumer, China has risen above pre -pandemic levels.
This recovery scenario can be seen from the company reporting a profit of up to $ 2.6 billion in the first quarter, far exceeding expectations for an increase of $ 1.4 billion.
This optimism made the market ignore a disappointing reading of U.S. crude oil inventory data by the American Petroleum Institute (API) which showed a jump of 4.3 million barrels last week.
In the European session, US WTI crude futures were strong at $ 63.22 a barrel, while Brent crude traded higher at $ 66.70 a barrel.
