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Oil prices jumped on Tuesday to extend gains from the previous session as expectations of an economic recovery in the developed world offset investor concerns over fuel demand in India.

Brent crude futures for July settlement jumped 1.8 percent to $68.75 a barrel, after having climbed 1.2 percent on Monday.

U.S. West Texas Intermediate (WTI) crude futures for June settlement were up 1.7 percent at $65.56 per barrel, after gaining 1.4 percent in the previous session.

The dollar rose and U.S. government bond yields edged higher after declining for two consecutive days amid optimism that a global economic recovery is gathering pace, thanks to successful vaccine rollouts in much of the developed world.

EU officials on Monday proposed easing restrictions on visiting the 27-nation bloc as vaccination campaigns across the continent gather speed.

Media reports suggest that Britain will announce the green list for countries that people can travel to on holiday shortly.

New York State, New Jersey and Connecticut will ease most of their pandemic curbs on businesses, including retail stores, food services and gyms, beginning on May 19, the governors of the three states said.

Federal Reserve Chairman Jerome Powell said that U.S. economic outlook has clearly brightened amid faster vaccination rates and fiscal stimulus.

“While the recovery is gathering strength, it has been slower for those in lower-paid jobs,” Powell said at a National Community Reinvestment Coalition event on Monday.

Traders await reports on crude and product stockpiles from the American Petroleum Institute later today and the U.S. Energy Information Administration on Wednesday for further direction.

The material has been provided by InstaForex Company – www.instaforex.com

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