SULAIMANI (ESTA) — Oil prices climbed on Tuesday, with investors regaining some risk appetite as they await clues from the U.S. Federal Reserve chairman on potential interest rate rises.
Brent crude futures rose 37 cents to $81.24 a barrel at 0556 GMT, after dropping 1% in the previous session.
U.S. West Texas Intermediate (WTI) futures jumped 49 cents to $78.72 per barrel, after falling 0.8% on Monday.
A weaker U.S. dollar also helped oil prices on Tuesday, as it makes oil cheaper for those holding other currencies, according to Reuters.
A U.S. Senate committee holds hearings this week for Federal Reserve Chair Jerome Powell and vice chair nominee Lael Brainard that could provide new details about the U.S. central bank’s plans to tighten monetary public.
“Rising virus cases are a cause of concern as restrictions impact mobility and thereby fuel demand,” Reuters quoted Ravindra Rao, head of commodity research at Kotak Securities, as saying.
“However, despite the sharp rise in cases, none of the major economies are looking at severe lockdowns,” Rao said.
“The virus situation, supply-related issues and trends in equity markets will be key factors affecting crude oil in the near term,” he added.
