Oil rises, but gains capped by demand concerns as India reels from Covid-19

Oil prices bounced back early on Tuesday from drops in the previous session, but gains were seen likely capped by growing concern about fuel demand in India, the world’s third-biggest crude importer now slammed by spiralling new coronavirus cases.

Brent crude was up 26 cents, or 0.4 per cent, at $65.91 a barrel by 0141 GMT, after dropping 0.7 per cent on Monday. US oil gained 23 cents, or 0.4 per cent, to $62.14, having declined by the same amount the previous session.

“There are clearly some concerns around the demand outlook, particularly over how the Covid-19 situation is developing in India,” ING Economics analysts said in a note.

The Centre ordered the country’s military to help respond to the surging coronavirus infections, with countries including Britain, Germany and the United States promising aid as the emergency overwhelms hospitals.