Oil rises as market shrugs off virus impact | Reuters

Oil rises as market shrugs off virus impact | Reuters

Oil prices rose more than $1 on Tuesday, recouping some of the losses in the previous session, as rise of demand in Europe and the United States outweighed concerns over a rise of COVID cases in Asian countries.

Brent crude was up $1.06, or 1.5%, at $70.10 a barrel by 1134 GMT, and U.S. oil rose $1.29 cents, or 1.9%, to $67.77 a barrel.

Both contracts dropped around 2.5% on Monday, but analysts believe the pandemic setback will not last for long.

"This turbulence should remain temporary, not the least as Western world oil demand is back at, or above, pre-pandemic levels and is draining global supplies," said Nortbert Ruecker, analyst at Swiss bank Julius Baer.

U.S. crude, gasoline, and other product inventories are likely to have dropped last week, with gasoline stocks forecast to fall for a fourth consecutive period, a preliminary Reuters poll showed on Monday.