<p>Oil prices extended gains on Thursday after rising 1 per cent the previous session, as bullish forecasts on recovering demand this summer outweighed concerns about the impact of rising Covid-19 cases in India, Japan and Brazil.</p>.<p>Brent crude for June rose 22 cents, or 0.3 per cent, to $67.49 a barrel by 9.35 am while US West Texas Intermediate crude for June was at $64.04 a barrel, up 18 cents, or 0.3 per cent.</p>.<p>Oil cartel OPEC, together with Russia and their allies, a group known as OPEC+, stuck to their plans for a gradual easing of oil production restrictions from May to July, after OPEC raised slightly its demand growth for 2021 to 6 million barrels per day. The group also expects global stocks to reach 2.95 billion barrels in July, taking them below the 2015-2019 average.</p>.<p>"A closer look at the state of global oil inventories suggests that the market may be closer to the point of rebalancing than what OPEC+ may think," Citi analysts said, adding that most of the crude inventory overhang has been absorbed by the market although refined products inventories still need to be worked off.</p>.<p>The bank also expects vaccination campaigns in North America and Europe to boost oil demand to a record high of 101.5 million bpd this summer while cautioning that rising Covid-19 cases in India and Brazil could hit local demand if deeper lockdowns are re-imposed.</p>.<p>"The outbreak in India is holding back oil's rally," Howie Lee, an economist at Singapore's OCBC bank said.</p>.<p>"But if India can sort it out and hopefully avert a full lockdown in the process, the market should likely continue its rally."</p>.<p>Investors focused on a ramp-up in US refinery operating rates and drawdown in distillates stocks last week, in data released by the Energy Information Administration on Wednesday.</p>.<p>US crude inventories rose by 90,000 barrels last week, much smaller than analysts' forecasts for a 659,000-barrel build.</p>.<p>In the UK, loadings of the Brent crude oil stream in the British North Sea, which underpin the Brent futures contract, would stop in mid-May if no deal is reached between the Unite union and the Shetland Islands Council employing them.</p>
<p>Oil prices extended gains on Thursday after rising 1 per cent the previous session, as bullish forecasts on recovering demand this summer outweighed concerns about the impact of rising Covid-19 cases in India, Japan and Brazil.</p>.<p>Brent crude for June rose 22 cents, or 0.3 per cent, to $67.49 a barrel by 9.35 am while US West Texas Intermediate crude for June was at $64.04 a barrel, up 18 cents, or 0.3 per cent.</p>.<p>Oil cartel OPEC, together with Russia and their allies, a group known as OPEC+, stuck to their plans for a gradual easing of oil production restrictions from May to July, after OPEC raised slightly its demand growth for 2021 to 6 million barrels per day. The group also expects global stocks to reach 2.95 billion barrels in July, taking them below the 2015-2019 average.</p>.<p>"A closer look at the state of global oil inventories suggests that the market may be closer to the point of rebalancing than what OPEC+ may think," Citi analysts said, adding that most of the crude inventory overhang has been absorbed by the market although refined products inventories still need to be worked off.</p>.<p>The bank also expects vaccination campaigns in North America and Europe to boost oil demand to a record high of 101.5 million bpd this summer while cautioning that rising Covid-19 cases in India and Brazil could hit local demand if deeper lockdowns are re-imposed.</p>.<p>"The outbreak in India is holding back oil's rally," Howie Lee, an economist at Singapore's OCBC bank said.</p>.<p>"But if India can sort it out and hopefully avert a full lockdown in the process, the market should likely continue its rally."</p>.<p>Investors focused on a ramp-up in US refinery operating rates and drawdown in distillates stocks last week, in data released by the Energy Information Administration on Wednesday.</p>.<p>US crude inventories rose by 90,000 barrels last week, much smaller than analysts' forecasts for a 659,000-barrel build.</p>.<p>In the UK, loadings of the Brent crude oil stream in the British North Sea, which underpin the Brent futures contract, would stop in mid-May if no deal is reached between the Unite union and the Shetland Islands Council employing them.</p>