Oil rebounds, but gains capped on demand worries as India reels from COVID-19
Oil prices rose on Tuesday after dropping in the last session, but gains are likely to be capped amid rising worries about fuel demand in India as the country faces a worsening COVID-19 pandemic.
Brent crude climbed 0.6%, or 36 cents, at $66.01 per barrel, following a 0.7% decline on Monday. U.S. oil rose 0.6%, or 36 cents, at $62.27 per barrel, after dropping 0.4% in the last session.
India’s woes come as OPEC and its allies including Russia are set to meet to discuss policy this week.
The OPEC technical committee maintained a forecast for oil demand growth in 2021 but expressed worries about rising COVID-19 infections in India and elsewhere.
The Indian government ordered the country’s military to help respond to the rising COVID-19 cases. Britain, Germany, and the United States promised aid as the emergency overwhelmed hospitals.