Oil prices bounce back on tight inventories, demand worries limit gains | Reuters
Oil rebounded from a weak start on Tuesday as worries over tight inventories underpinned prices, although optimism was limited by fears over demand following a pickup in COVID-19 cases in Europe.
Brent futures added 96 cents, or 1.2%, to $83.01 a barrel, as of 0712 GMT, while U.S. West Texas Intermediate (WTI) crude climbed 80 cents, or 1%, to $81.68 a barrel.
"At these oil prices, supply is going to grow but it might take six months and inventories have come down so low. We don't have a safety margin," said Tony Nunan, a Tokyo-based senior risk manager at Mitsubishi Corp.
"We have very low inventory levels and if we have a very cold winter and OPEC is still sluggish at increasing supplies that could push oil prices up."
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