Melbourne — Oil prices on Wednesday consolidated strong overnight gains as a bullish outlook for US fuel demand outweighed concern about mobility curbs in Asia with the spread of the highly infectious Covid-19 Delta variant.
US West Texas Intermediate crude futures rose 6c, or 0.1%, to $68.35 a barrel at 1.36am GMT, adding to a 2.7% jump on Tuesday.“Oil prices rose on the hope that oil demand growth will outpace supply growth despite the spread of the highly transmissible Delta variant of Covid-19,” Commonwealth Bank commodity analyst Vivek Dhar said in a note.
“With OECD commercial crude oil stockpiles having dropped back to pre-Covid levels already, a tightening oil market outlook will likely amplify oil price gains,” he said.
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