Crude oil prices ended slightly lower on Tuesday, retreating after scoring a big gain in the previous session.
Traders were weighing the supply position amid reports shale oil producers in the southern United States could take at least a couple of weeks to restart the more than 2 million barrels per day of crude output that shut down because of a deep freeze.
The oil market is also looking ahead to the upcoming meeting of the Organization of the Petroleum Exporting Countries and their allies.
West Texas Intermediate Crude oil futures for April ended down $0.03 at $61.67 a barrel, coming off the session’s high of $63.00 a barrel.
Goldman Sachs says in its report that oil consumption will get back to pre-virus levels by late July, while output from major producers is likely to remain “highly inelastic” to the rising prices.
Morgan Stanley expects Brent crude prices to climb to $70 per barrel in the third quarter on “signs of a much improved market” including prospects of a pick-up in demand.
The weekly crude inventory data from the American Petroleum Institute (API) and Energy Information Administration (EIA) are due later today, and tomorrow morning, respectively.