SULAIMANI (ESTA) — Oil prices rose on Tuesday after failing in the previous session, but gains are likely to be capped amid growing concern about fuel demand in India.
Brent crude rose 49 cents to $66.29 per barrel by 0334 GMT, while U.S. West Texas Intermediate (WTI) gained 48 cents to $62.39 a barrel.
India’s woes come as OPEC+, including OPEC and allies led by Russia, are set to discuss policy on production at a meeting this week, according to Reuters.
The OPEC+ joint technical committee has maintained a forecast for growth in oil demand growth this year, but has concerns about the surging coronavirus cases in India and elsewhere, Reuters cited three sources from the producer group as saying.
The Indian government ordered the country’s military to help respond to the rising coronavirus infections, with countries including Britain, Germany and the United States promising aid as the emergency overwhelms hospitals.
“The big question is whether OPEC+ feels that the situation is bad enough to alter its planned production easing from May 1,” Reuters quoted ING Economics analysts as saying.
“We still expect that the group will announce no changes to its plan when they meet tomorrow.”
