Oil prices attempt sluggish recovery with easing of lockdowns

Oil prices climbed on Tuesday, paring losses from the previous session, as markets broadly rose on growing confidence in a global recovery with pandemic lockdowns easing.

Brent crude futures rose 1.4%, or 56 cents, to $41.36 a barrel. The benchmark contract fell $1.50 on Monday, snapping a seven-day streak of gains.

U.S. West Texas Intermediate (WTI) crude futures rose 1.3%, or 50 cents, to $38.69 a barrel at 0134 GMT, after dropping by $1.36 on Monday.

“With Brent holding very nicely above $40, there’s talk among traders that WTI will test that level soon,” said Michael McCarthy, chief market strategist at CMC Markets.

New York City, the U.S. city hardest hit by the novel coronavirus outbreak, began reopening on Monday after about three months, in a sign that life is returning to pre-outbreak routines that could spur fuel demand to return.

U.S. crude stockpiles are estimated to have fallen by 1.5 million barrels last week, a preliminary Reuters poll showed ahead of a report from the American Petroleum Institute industry group later on Tuesday.

Reuters