Brent adds over 2% on hopes for global demand recovery, lower Russian output

Brent crude continued to rise as the US market opened on Tuesday, rising more than 2%, to extend gains for the second straight day on hopes for a global demand recovery after most countries expanded their easing measures of the general coronavirus-lockdown, which add more market balance, in addition to a drop in Russia's output within the OPEC-Plus global production cut agreement.

Brent rose 2.1% to $36.42 a barrel, after opening at $35.66, and hit a day low of $35.54.

Brent futures closed higher by 0.7% yesterday, posting the third gain in  4 days, after the US drilling activities dropped to the 11-year low.

Most countries around the world started expanded their easing measures of the general coronavirus-lockdown, which adds more market balance, which improved fuel demand as more cars are back on the roads, and global air traffic will also resume soon. 

Additionally, hopes for a global demand recovery, adds more market balance, especially amid the major global producers commitment to the OPEC-Plus global production cut agreement.

The Russian oil production fell near the OPEC-Plus global cut agreement's target of 8.5 million barrels per day.

The OPEC-Plus coalition started implementing a global production cut by 9.7 million barrels per day, and will continue until June, but the cut will be reduced to 7.7 million bpd from July until the end of 2020, and will be reduced again to 5.7 million bpd starting in January 2021 to April 30, 2022.

The Russian Energy Minister Alexander Novak said on Monday that the rising fuel demand will help cut the current global surplus of 12 million barrels to only 7 million by next June or July.