Daily Times

Oil prices rose on Tuesday supported by strong economic data from China and the United States, recouping some of the losses from the previous session due to rising OPEC+ supply and infections in India and parts of Europe. Brent rose 90 cents, or 1.5%, to $63.05 a barrel by 0840 GMT. US West Texas Intermediate (WTI) crude rose 98 cents, or 1.7%, to $59.63.

Both contracts fell around $3 on Monday. Coronavirus-related deaths worldwide crossed 3 million on Tuesday, according to a Reuters tally, as the latest global resurgence of COVID-19 infections is challenging vaccination efforts across the globe.

“The current situation is fragile, therefore re-visiting the recent highs (of oil prices)… is not imminent,” said PVM analyst Tamas Varga. “Until there are palpable signs of falling infection rates the oil market is likely to remain violent and hectic,” he added. Market sentiment was buoyed as March data showed US services activity hit a record high. China’s service sector has also gathered steam with the sharpest increase in sales in three months In addition, England is set to ease more restrictions on April 12, with the opening of businesses including all shops, gyms, hair salons and outdoor hospitality areas. New Zealand will allow quarantine-free visits by Australians from April 19, creating a “travel bubble” for the neighbouring nations.