Oil rises amid expectation of further draw in crude inventories
Oil prices went up on Tuesday, as tight supply and an expected further draw in the US and global crude inventories provided relief, albeit concerns over the spread of the new COVID-19 variant hindered gains.
Brent crude for September went up 0.8%, or 63 cents, to $75.79 a barrel by 08:52 GMT, after its 0.5% loss on Monday.
US West Texas Intermediate crude for August rose 0.8%, or 60 cents, at $74.70 a barrel, following a 0.6% dip the previous day.
Crude stockpiles have been steadily decreasing for several weeks, with the US inventories reaching their lowest since February 2020 in the week to July 2.
The International Energy Agency stated on Tuesday that the global tapping of oil in storage during the third quarter would be the biggest in at least 10 years and that the early June data from the United States, Europe, and Japan revealed a large stock draw.
Meanwhile, the Organization of Petroleum Exporting Countries and allies (OPEC+) has not yet made progress in diffusing the feud between Saudi Arabia and the United Arab Emirates.
It is unlikely that there will be another policy meeting with the week, OPEC+ sources informed.