Despite the Monday hit from increased OPEC output and Saudi Arabia’s price cuts, WTI Crude jumped 2.02%, while Brent gained 1.95% at the time of writing on Tuesday.
On Monday, both contracts fell over 3% as prices struggled against macroeconomic forces.
However, “despite the outlook of softening demand for oil globally, Brent Crude has gained ground and is now hovering above $76. With the Middle East situation so fragile and the risks of escalation still bubbling, upward pressure has resumed, helping energy giants in early trade,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Nonetheless, the drop in oil price earlier this week “has added to hopes that price pressures on consumers will ease, as lower Brent crude prices would feed through to lighter transportation costs,” added Streeter.
Investors will keep a close eye on the situation in the Red Sea and economic data for signs for future growth.
