Crude oil prices moved higher on Tuesday after a somewhat lackluster session with traders looking ahead to the upcoming meeting of the Organization of the Petroleum Exporting Countries and its allies.
Traders are also awaiting weekly oil reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). While the API’s report is due later today, the EIA is scheduled to release its report Wednesday morning.
Concerns about outlook for energy demand due to the surge in the delta variant of the coronavirus infection and fresh curbs on travel in several European countries weighed on crude oil prices.
West Texas Intermediate Crude oil futures for August ended up by $0.07 at $72.98 a barrel.
The OPEC+ meeting, scheduled to take place on Thursday (July 1), will likely see the members agreeing on increasing crude output by an additional 500,000 barrels a day from August amid hopes energy demand will pick up.
Meanwhile, outbreaks of the highly contagious COVID-19 variant Delta raised concerns that the economic recovery will be slow.
In Australia, the cities of Sydney, Perth, Brisbane and Darwin have all been put into lockdown as the outbreak spreads. Spain and Portugal announced restrictions on the entry of unvaccinated British citizens ahead of the peak summer vacation period.