© Reuters. Oil Holds Gain Near $65 as Traders Bet on Improving Demand
(Bloomberg) — Oil held gains near $65 a barrel on optimism that the steady resumption of economic activity in the U.S. and Europe will underpin demand.
West Texas Intermediate was steady in early Asian trading, following Monday’s 1.4% increase.
The European Union plans to ease curbs for vaccinated travelers this summer, while states around the New York region are set to relax capacity restrictions. That’s offsetting concerns about weaker oil consumption in parts of Asia, including India, where Covid-19 remains rampant.
Oil has soared in 2021 — amid a broad advance across commodity markets — as investors bet the rollout of vaccines will permit a return to pre-pandemic conditions. Reflecting that rebound, Federal Reserve Chair Jerome Powell said that the U.S. economic recovery is “making real progress,” although he cautioned that the gains have been uneven.
The market’s strength so far in May will hearten members of the Organization of Petroleum...read more...