Oil rises as markets shift focus from virus impact.
Oil rising today – recouping some of the losses from the previous session, as rise of demand in Europe and the United States outweighed concerns over a rise of COVID cases in Asian countries. In the United States, the Senate is set to vote on the passage of a $1 trillion infrastructure bill later on Tuesday, which, if passed would boost the economy and demand for oil products. Successful vaccination programmes in the West and encouraging economic data come in sharp contrast to the rising infection in the East – leading the markets to overlook the virus reports from the region. Moreover, the lockdowns and mass testing in China, the world’s top crude oil importer, are expected to be successful in stopping the spread of the virus and should lead to the resumption of oil demand – emboldening oil bulls.
Expect buyers on downward corrections.
Next resistance to watch – 72.20
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