Oil recovers from three-week low amid surge in Delta variant infections

TOKYO (Reuters) -Oil prices rose more than 1% on Tuesday, recouping some of the losses in the previous session when prices hit a three-week low, but gains are likely to be limited on worries that rising COVID-19 cases and restrictions in China will dent fuel demand.

Brent crude was up by 84 cents, or 1.2%, at $69.88 a barrel by 0656 GMT, after falling 2.3% on Monday. U.S. oil was up by 99 cents, or 1.5%, at $67.47 a barrel, having fallen by 2.6% in the previous session.

China on Tuesday reported more COVID-19 infections in the latest outbreak of the disease that was first detected in the country in late 2019, in what analysts said was the biggest test of Beijing’s zero-infection strategy.