Oil prices rise as supply cut hopes outweigh Covid-19 resurgence fears
Oil prices made marginal gains on Tuesday, reversing out of earlier losses, as hopes for further cuts in crude supplies took the sting out of concerns that a resurgence of new coronavirus infections around the world could hamper fuel demand.
Brent crude edged up 9 cents, or 0.2 per cent, at $39.81 a barrel by 0659 GMT, having gained 2.6 per cent on Monday. U.S. oil gained 3 cents, or nearly 0.1 per cent, to $37.15 a barrel, after closing 2.4 per cent higher in the previous session.
Coronavirus cases rose to more than 8 million worldwide by Monday, with infections surging in Latin America, while the United States and China are dealing with fresh outbreaks. But some observers said they didn’t expect to see any return to the stringent lockdowns seen at the start of the year.
