Oil prices rallied on Tuesday, supported by dollar weakness and the US plan to rebuild its strategic reserves, but gains were limited by uncertainty related to the impact of rising Covid-19 cases in China. the largest oil importer in the world.
Crude oil futures were up 0.65% to $80.30 a barrel by 10:35 GMT, after also rising in the previous session.
West Texas Intermediate crude futures rose $1, or 1.31%, to $76.19 a barrel, after rising 90 cents on Monday.
The market received support from the US plan announced last week to buy up to 3 million barrels of oil for the strategic reserve, after the US released a record 180 million barrels of inventories this year.
A weak US dollar has also supported prices as it makes oil cheaper for holders of other currencies.
The Qatar National Bank said – in a statement – “Oil prices could see a further increase, as we expect spot markets to become increasingly tight due to supply restrictions and strong global demand.” the next quarters.
Edward Moya, an analyst at OANDA, said in a note that there must be clear signs of growing demand for higher prices.
Crude oil is still on track to post its second monthly loss this December as markets continue to lack liquidity levels following monetary policy tightening and interest rate hikes, especially in the U.S. and in the Eurozone.
