Oil prices rose on Tuesday, clawing back more of last week’s losses as investors focused on tight supplies of crude and fuel products rather than concerns about a recession dampening demand going forward.
Brent crude futures rose 81 cents, or 0.7%, to $114.94 a barrel at 0703 GMT, adding to a 0.9% gain on Monday. The benchmark contract fell 7.3% last week in its first weekly fall in five.
U.S. West Texas Intermediate (WTI) crude futures for July, which expire later on Tuesday, rose to $111.19 a barrel, up $1.63, or 1.5%, from Friday’s close. There was no settlement on Monday, which was a U.S. public holiday. WTI dropped 9.2% last week.
The more-active WTI contract for August was up $1.84 at $109.83 a barrel.
“Supply concerns are likely to persist in the coming months as OPEC+ countries, the world’s major oil producers, may not have enough spare capacity… The summer travelling season and China easing its COVID-19 restrictions will push demand to grow further,” said Leona Liu, analyst at Singapore-based DailyFX.
“Although recession fears have increasingly become a headwind for oil prices, it is estimated that we still have at least half a year to go before a real recession.”