Oil Climbs on Supply Disruptions, Easing COVID-19 Restrictions in China
LONDON—Oil extended gains on Tuesday on supply disruptions and as COVID-19 restrictions eased in China, the world’s largest crude importer.
Brent crude futures were up 64 cents, or 0.82 percent, to $78.63 per barrel by 1159 GMT, while U.S. West Texas Intermediate (WTI) crude futures gained 39 cents, or 0.53 percent, to $73.56.
WTI hit a low of $70.25 on Monday, close to the $70 theoretical buyback price at which U.S. President Joe Biden aimed to replenish U.S. crude stocks. This offered support on Tuesday.
Further support followed “relaxations of COVID curbs in China, the threat of lower Russian output in response to the G7 price cap, [and] an outage on the keystone pipeline in the U.S.,” said Craig Erlam, senior market analyst at OANDA….