Oil prices recorded some gains yesterday clawing back some of the previous session’s deep losses, even though concerns mount over coronavirus curbs combined with slowing factory activity in key buyer countries to keep a lid on gains.
Brent crude oil futures rose 24 cents, or 0.3 per cent, to $73.13 a barrel while the US West Texas Intermediate (WTI) crude added 26 cents, or 0.4 per cent, to $71.52 a barrel.
Both markets dropped more than 3 per cent on Monday.
ANZ analysts in a note highlighted resurgent economic risks to major oil consumer China from the coronavirus pandemic. “Cases of the highly contagious Delta variant have emerged in 14 of 32 provinces. This could see further mobility restrictions introduced,” ANZ analysts wrote.
They also flagged slowing manufacturing activity as a key concern, to both China and the United States.