Crude oil futures rebounded on Tuesday as market participants vied to take advantage of oil’s two-month low hit in the previous session.
Monday’s selloff, spurred by demand destruction fears amid rising COVID-19 cases, pushed oil about 7% lower and hit other riskier assets. While equities avoided a new selloff on Tuesday, U.S. Treasury and German bond yields also slipped as a reminder that investors remained worried.
“There are bottom pickers trying to get into this dip,” said Bob Yawger, director of energy futures at Mizuho in New York.
Brent crude rose 73 cents, or 1%, to settle at $69.35 per barrel, having slid by 6.8% on Monday. The global benchmark has fallen from over $77 hit in early July - its highest since late 2018.
Tuesday is the final trading day for August U.S. crude futures, adding volatility to the market, Yawger said.
The expiring U.S. crude August settled 1.5% higher at $67.42 per barrel after earlier touching a session low of $65.21. The contract fell 7.5% on Monday.
Still, the market remained skeptical that the price increase would last.
Reference: CNBC
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