Oil prices rose on Tuesday after more US states eased lockdowns and the European Union sought to attract travelers, although the surge in COVID-19 cases in India capped gains.
Brent futures were up $ 1.19, or 1.76%, to $ 68.75 a barrel at 1:41 p.m. GMT after climbing 1.2% on Monday.
US West Texas Intermediate (WTI) crude futures rose $ 1.05, or 1.63%, to $ 65.54 after jumping 1.4% on Monday. Both contracts rose about 2% in past trade.
Prices are supported by the prospect of a recovery in fuel demand as New York State, New Jersey and Connecticut seek to ease the brakes on the pandemic and the EU plans to open up to foreign visitors who have been vaccinated, analysts said. Read more
“The current force is dominated by US gasoline, where demand is considered healthy as more motorists take to the roads,” said Tamas Varga, analyst at PVM Oil Associates.
“The strength of yesterday’s stock market is followed this morning in the oil market … the market is focused on the successful roll-out of vaccination programs in the United States and other developed countries and not on the devastation in India and Brazil. “
For other signs of increasing demand for oil in the United States, traders will watch for crude and commodity inventory reports from the American Petroleum Institute on Tuesday and the US Energy Information Administration on Wednesday.
Five analysts polled by Reuters estimated on average that US crude inventories (USOILC = ECI) fell by 2.2 million barrels in the week ending April 30. Oil inventories have risen over the previous two weeks.
The refinery utilization rate (USOIRU = ECI) is expected to have increased by 0.5 percentage points last week, up from 85.4% of total capacity in the week ended April 23, according to the poll.
A weaker dollar, hit by an unexpected slowdown in US manufacturing growth, also helped support oil prices on Tuesday. The falling dollar makes oil more attractive to buyers holding other currencies. Read more
In India, the total number of infections fell to just under 20 million after the country recorded more than 300,000 new cases for the 12th consecutive day, which is expected to affect fuel demand in the most populous country in India. world behind China. Read more
“The strong demand forecast for the second half of 2021 provides a bullish seat for traders to stimulate rallies, not allowing a strong negative price reaction to drag on for long, even in times of crisis, such as the recent one in India,” Rystad said. Louise Dickson, Energy Analyst.
“In fact, looking at future balances, prices are likely to climb again to around $ 70 a barrel in the coming months, unless we see another policy change from OPEC. +. “
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