Brent futures back above $67.50/b as India demand concerns pared

London (Quantum Commodity Intelligence) – Crude oil futures rebounded Monday as once again confidence in demand growth, particularly from the US and China, outweighed concerns over India's coronavirus surge.

Brent futures for front-month July were trading at $67.52/barrel in London (1433 GMT), compared to Friday's settle of $66.76/b, an increase of 1.14% on the day.

Monday's UK bank holiday does not impact on ICE trading hours, although volumes were slightly lower.

At the same time, June WTI was trading at $64.38/b, up1.26% from Friday's settlement of $63.58/b.

Oil markets were buoyed last week by the data from the US Energy Information Administration showing a draw of 3.3 million barrels in distillate inventories.

India reported new coronavirus cases above 300,000 for 12th successive day Monday, casting new fears on any demand rebound from Asia's second largest oil consumer.

Energy consultants Rystad warned last week Indian demand could fall by 575,000 barrels per day (bpd) of oil liquids in April and 915,000 bpd in May 2021, "disturbing the almost-balanced global oil market and building a sizeable glut."

Elsewhere, traders continue to monitor the situation regarding Iran's crude exports, which continue to increase.