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  • An oil rig sits off the shore at sunset in Huntington Beach, California, U.S., May 15, 2020.

    An oil rig sits off the shore at sunset in Huntington Beach, California, U.S., May 15, 2020. | Photo: EFE

Published 21 May 2020

The price of crude oil reached its lowest level in decades in 2020, below $16 per barrel in April, as demand plummeted.  

Oil reached its highest price since March on Thursday, thanks to a recovery in demand, as governments ease restrictions imposed due to the COVID-19 crisis.

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The price of crude oil reached its lowest level in decades in 2020, below $16 per barrel in April, as demand plummeted.  

With rising fuel consumption and more signs that excess supply is being addressed, Brent has more than doubled since then.

"Global supply has been greatly reduced," Rystad Energy analyst Paola Rodriguez Masiu said. "We are now on a clear path to a gradual recovery.

In the latest sign of a supply crunch, U.S. oil inventories fell by 5 million barrels last week. Analysts expected a rise. 

At the same time, there is evidence that fuel use is recovering. The British airline EasyJet plans to restart some flights on June 15, which points to increased demand for jet fuel.

Physical oil markets, which reached record lows just a few weeks ago, are also rising. 

It is now very clear that the market is adjusting and that oil prices are recovering as demand returns," according to analysts.

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