WTI crude oil climbed toward $74 per barrel on Tuesday after gaining more than 3% in the previous session, underpinned by an improving demand outlook from top crude importer China after its ambassador to the US said the country will relax Covid rules further and will welcome more international travelers in the “near future.”
On the supply side, the market remains clueless on how long Canada’s TC Energy Corp would take to clean up the largest oil spill in US land in about a decade and restart the Keystone pipeline. On top of that, President Vladimir Putin recently threatened to reduce production and cut supply in retaliation to a Western price cap on Russian oil, a move from the EU, G7, and Australia that so far had little impact on global markets.
Meanwhile, investors remain cautious ahead of a key US inflation report on Tuesday and the Federal Reserve’s policy decision on Wednesday, as expectations of further monetary tightening reignited recession fears.
