Oil climbs on expected further draw in U.S. crude inventories | Reuters

Oil climbs on expected further draw in U.S. crude inventories | Reuters

Oil prices climbed on Tuesday, reversing most of the previous day's losses, as tight supply and expectations of a further draw in U.S. crude inventories provided support, although fears over the spreading COVID-19 variant capped gains.

Brent crude for September rose 36 cents, or 0.5%, to $75.52 a barrel by 0655 GMT, after losing 0.5% on Monday. U.S. West Texas Intermediate crude for August was at $74.45 a barrel, up 35 cents, or 0.5%, having fallen 0.6% the previous day.

"Optimism about tight supply and declining U.S. crude stockpiles lent support," said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co.

"Still, growing concerns over a spike in COVID-19 infection cases worldwide and uncertainty over production plans by OPEC+ will likely limit gains," he added.