Oil Gains As U.S. & Europe Growth Prospects Counter India Concerns

Oil Gains As U.S. & Europe Growth Prospects Counter India Concerns

04 May 2021 11:10 AM
 

Oil prices extended gains on Tuesday as more U.S. states eased lockdowns and the European Union sought to attract travelers, helping to offset concerns over fuel demand in India as COVID-19 cases soar.   

Brent crude futures rose 6 cents, or 0.1%, to $67.62 a barrel, after climbing 1.2% on Monday.

U.S. West Texas Intermediate (WTI) crude futures also ticked 5 cents, or 0.1% higher, to $64.54 a barrel, after gaining 1.4% on Monday.

Prices are being supported by the prospect of a pick-up in fuel demand in the United States and Europe, as New York state, New Jersey and Connecticut were set to ease pandemic curbs and the European Union planned to open up to more foreign visitors who have been vaccinated, analysts said.

For further signs of rising U.S. oil demand, traders will be watching out for reports on crude and product stockpiles from the American Petroleum Institute on Tuesday and the U.S. Energy Information Administration on Wednesday.

A weaker dollar, hit by an unexpected slowdown in U.S. manufacturing growth, also helped shore up oil prices on Tuesday. The lower dollar makes oil more attractive to buyers holding other currencies.

In India, the total number of infections so far rose to just short of 20 million, propelled by a 12th straight day of more than 300,000 new cases which is expected to hit fuel demand in the world's most populous country after China.

Oil prices extended gains on Tuesday as more U.S. states eased lockdowns and the European Union sought to attract travelers, helping to offset concerns over fuel demand in India as COVID-19 cases soar.   

Brent crude futures rose 6 cents, or 0.1%, to $67.62 a barrel, after climbing 1.2% on Monday.

U.S. West Texas Intermediate (WTI) crude futures also ticked 5 cents, or 0.1% higher, to $64.54 a barrel, after gaining 1.4% on Monday.

Prices are being supported by the prospect of a pick-up in fuel demand in the United States and Europe, as New York state, New Jersey and Connecticut were set to ease pandemic curbs and the European Union planned to open up to more foreign visitors who have been vaccinated, analysts said.

For further signs of rising U.S. oil demand, traders will be watching out for reports on crude and product stockpiles from the American Petroleum Institute on Tuesday and the U.S. Energy Information Administration on Wednesday.

A weaker dollar, hit by an unexpected slowdown in U.S. manufacturing growth, also helped shore up oil prices on Tuesday. The lower dollar makes oil more attractive to buyers holding other currencies.

In India, the total number of infections so far rose to just short of 20 million, propelled by a 12th straight day of more than 300,000 new cases which is expected to hit fuel demand in the world's most populous country after China.