rose oil prices in early trading, Today, Tuesday, supported by the weakness of the dollar and the US plan to rebuild its strategic reserves, but the gains were limited by the uncertainty related to the impact of the rise in “Covid-19” cases in China, the world’s largest oil importer.
Brent crude futures rose 61 cents, or 0.8%, to $80.4 a barrel by 01:24 GMT.
US West Texas Intermediate crude futures rose 65 cents, or 0.9%, to $75.84 a barrel, after rising 90 cents in the previous session.
The market received support from the US plan announced last week to buy up to three million barrels of oil for the strategic reserve, after the United States this year released 180 million barrels of storage, a record.
The weakness of the US dollar also supported prices as it makes oil cheaper for holders of other currencies, as the dollar index reached around 104.7.
But for prices to rise further, analysts said there would need to be clear signs of increased demand.
“The outlook for oil demand will be key to how high crude prices are and that may have difficulty being clear as we see mixed signals with the lifting of lockdown restrictions in China,” OANDA analyst Edward Moya said in a note.
Today, Tuesday, China recorded a jump in new confirmed cases of coronavirus, reaching 2,722 on December 19, up from 1,995 the previous day.
However, there is growing skepticism about whether the official tally captures the true number of infections, with anecdotal evidence suggesting that the disease is spreading in cities.