Oil rises towards $82 as demand recovery seen on track | Reuters

Oil rises towards $82 as demand recovery seen on track | Reuters

Oil rose towards $82 a barrel on Tuesday, supported by tight supply and hopes that rising coronavirus cases and the spread of the Omicron variant will not derail a global demand recovery.

OPEC supply additions are running below their allowed increase under a pact with allies due to a lack of capacity in some countries. Major economies have avoided a return to severe lockdowns, even as coronavirus cases soar.

"Despite continuously rising Omicron cases, European governments have taken the view that the time is now right to ease restrictions, raising the hopes of oil demand recovery," said Tamas Varga of oil broker PVM.

Brent crude gained 88 cents, or 1.1%, to $81.75 a barrel at 0915 GMT, after dropping 1% in the previous session. U.S. West Texas Intermediate (WTI) rose 95 cents, or 1.2%, to $79.18, after falling 0.8% on Monday.