Crude oil prices have climbed higher Tuesday morning, rebounding from losses in the previous session.
Oil prices had tumbled on Monday, weighed down by concerns about the impact of a potential collapse of Chinese realty major Evergrande.
Data showing a slow recovery of U.S. oil output in the Gulf of Mexico, which faced disruptions due to Hurricane Ida recently, is supporting oil prices.
Meanwhile, traders now look ahead to weekly oil inventory reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). The API’s report is due later today, while the EIA is scheduled to release its inventory data Wednesday morning.
West Texas Intermediate Crude oil futures for November are up $0.62 or 0.89% at $70.91 a barrel.
Brent crude futures are gaining $0.63 or 0.85% at $74.55 a barrel.
According to reports, U.S. oil output in the Gulf of Mexico is recovering slowly. As of Monday, more than 18% of production in the Gulf remained shut in.
Royal Dutch has reportedly said that damage to its transfer facility is unlikely to be repaired until the first quarter of next year.