SULAIMANI (ESTA) — Oil prices rose on Tuesday with investors betting tight supply and rising vaccination rates will help offset any impact on demand due to surging coronavirus cases worldwide.
Brent crude futures climbed 22 cents to $74.72 a barrel at 0629 GMT, extending 0.5% gain on Monday.
U.S. West Texas Intermediate (WTI) crude futures rose 12 cents to $72.03 per barrel, after losing 16 cents on Monday.
“Oil prices are set to range this week after recovering all of the ‘delta-dip’ losses from the last Monday week,” Reuters quoted Jeffrey Halley, a senior Asia Pacific market analyst at OANDA, as saying.
Global oil markets are expected to remain in deficit despite a decision by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, to raise production through the rest of the year, according to Reuters.
ANZ Research analysts said “robust road traffic data across most major regions suggests rising infections are having minimal impact”.
“Investors are also encouraged by the continued restraint by U.S. shale oil producers. So far they have maintained discipline, with a focus on returns rather than growth,” ANZ Research analysts said in a note.
Investors are also awaiting inventory data from the American Petroleum Institute industry group on Tuesday and the U.S. Energy Information Administration on Wednesday for further evidence that demand is holding up.
