Oil gains with stronger growth outlook allaying virus concerns

Oil rose as a brighter outlook for economic growth and summer travel eased concerns around the impact of a resurgent coronavirus.

Futures in New York closed 1.2% higher on Tuesday after easing off session highs as U.S. equities weakened. Oil prices remained supported by the International Monetary Fund’s stronger global growth forecast of a 6% expansion this year and the U.S. government’s expectation for rising gasoline demand this summer as Americans get back on the road.

“We’ve gotten to a point of somewhat equilibrium,” and the market “is in an in-between spot,” said Bill O’Grady, executive vice president at Confluence Investment Management in St. Louis. “To maintain gains, we’re going to have to see the economy pick up and energy demand continue to rise.”