Oil rises amid weakened fuel demand
Oil went up in Asia on Tuesday, regaining some of its losses on Monday. Investors have begun bargain hunting amid expectations supply will not be increasing anytime soon. However, the black liquid’s gains were dampened by the continuously increasing number of COVID-19 cases that have weakened the fuel demand outlook.
Brent oil futures crept up 0.06% to $69.55 by 12:56 AM ET (4:56 AM GTM), and WTI futures likewise gained 0.06% to $67.09.
The Organization of Petroleum Exporting Countries and allies (OPEC+) reportedly remains confident that its planned output increase is sufficient for the short term, even as the US continues to pressure the oil group to increase supplies and keep a tight lid on prices.
Meanwhile, investors are concerned over China’s weaker fuel demand. The country’s daily crude processing in July hit its lowest level since May 2020, as independent plants pared-down production amid tighter quotas, high inventories, and weakening profits. China is the world’s top importer of oil.
Investors are now looking forward to the US crude oil data from the American Petroleum Institute, due later in the day.