Oil rebounds from three-week low, kept in check by virus concerns
Oil went up by more than 1% on Tuesday, recovering from its losses earlier in the previous session where it hit a three-week low. However, the black liquid’s gains are likely to be hampered by concerns over the increasing number of COVID-19 cases and fears that China’s restrictions will affect fuel demand.
Brent crude gained 1.2%, or 84 cents, to trade at $69.88 a barrel by 0656 GMT, after its 2.3% loss on Monday. US oil was also up 1.5%, or 99 cents, trading at $67.47 a barrel, following its 2.6% decline in the previous session.
Meanwhile, in China, the number of reported COVID-19 infections in the country’s latest outbreak continues to rise.
Several cities in China, the leading importer of crude oil globally, have stepped up mass testing in a bid to curb the local transmission of the coronavirus’ Delta variant.
Across the Pacific, the rising number of COVID-19 cases in the US is also taking a toll on the outlook for economic growth and overall consumption.