Oil prices climbed on Tuesday, with investors regaining some risk appetite as they await clues from the U.S. Federal Reserve chairman on potential interest rate rises and as some oil producers continued to struggle to beef up output.
U.S. West Texas Intermediate (WTI) crude futures rose 68 cents, or 0.9%, to US$78.91 a barrel, after falling 0.8% on Monday.
A U.S. Senate committee holds hearings this week for Federal Reserve Chair Jerome Powell and vice chair nominee Lael Brainard that could provide new details about the U.S. central bank’s plans to tighten monetary policy.
“Rising virus cases are a cause of concern as restrictions impact mobility and thereby fuel demand,” said Ravindra Rao, head of commodity research at Kotak Securities.
“However, despite the sharp rise in cases, none of the major economies are looking at severe lockdowns.”