By Bozorgmore Sharafedin
LONDON (Reuters) – Oil prices rose more than $ 1 on Tuesday, recovering some of the losses from the previous session, as increased demand in Europe and the United States outweighed concerns about a surge in COVID cases. in Asian countries.
It was up $ 1.20, or 1.7%, to $ 70.24 a barrel at 0858 GMT, and US oil was up $ 1.47 cents, or 2.2%, to $ 67.95 a barrel.
Both contracts fell about 2.5% on Monday, but analysts believe the pandemic’s setback won’t last long.
“This turbulence should remain temporary, especially as Western world oil demand is back at or above pre-pandemic levels and is depleting global supplies,” said Nortbert Ruecker, an analyst at Swiss bank Julius Baer.
Inventories of gasoline, gasoline and other products are likely to have fallen in the past week, and gasoline stocks are forecast to fall for the fourth consecutive period, a preliminary Reuters poll showed on Monday. [EIS/S]
Crude inventories are expected to have fallen about 1.1 barrels in the week to Aug. 6, according to the average estimate of six analysts polled by Reuters.
In the United States, the Senate is set to vote to pass a $ 1 trillion infrastructure bill later Tuesday, which, if passed, would boost the economy and demand for oil products, analysts said.
Successful vaccination programs in the West and encouraging economic data are in stark contrast to the growing infection in the East.
In Australia, police force is on the streets to enforce COVID-related restrictions and some cities in China, the world’s leading crude oil importer, have stepped up massive testing as authorities try to stamp out a new wave of the virus.
“The negative developments surrounding COVID-19 have certainly left investors nervous, and caution is likely to remain the name of the game for the next several days,” said Lukman Otunuga, analyst at FXTM.
This week’s economic data, especially the US Consumer Price Index on Wednesday, will provide guidance on how strongly the virus will affect global and regional oil consumption, analysts said.
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