Crude oil prices are higher Tuesday morning despite lingering concerns about the economic impact of the coronavirus pandemic and latest forecasts indicating a drop in global energy demand.
Strong industrial production and retail sales data from China and a report showing an improvement in German business confidence appear to be pushing up crude oil prices.
After OPEC lowered the energy demand forecast for the current year and 2021 yesterday, the International Energy Agency (IEA) has now trimmed its outlook for demand for this year.
The IEA has trimmed its outlook by 200,000 barrels per day to 91.7 million barrels per day, citing uncertainty about the pace of economic recovery.
OPEC had lowered its oil demand forecast for the year, saying demand will fall by about 9.46 million barrels per day. In July, OPEC had said it expects demand to fall by 9.06 million barrels per day.
West Texas Intermediate Crude oil futures for October are up $0.50 or 1.34% at $37.76 a barrel, after rising to $38.02 a barrel earlier this morning.
Meanwhile, markets are looking ahead to weekly oil reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). While API's report is due later today, the EIA will release its inventory data Wednesday morning.