• Lockdowns continue to ease and oil demand is on the up.
  • Bulls are looking to a run towards the $70 handle.

Oil prices were on the bid on Tuesday, buoyed as more US states eased lockdowns and the European Union sought to attract more travellers, which would help offset weakened fuel demand in India as COVID-19 cases soar.

At the time of writing, WTI is trading at $65.73 travelling between a low of $64.32 and a high of $65.82.

The price is up almost 2% at the time of writing. 

US West Texas Intermediate futures also rose 14 cents, or 0.2%, to $64.63 a barrel, after gaining 1.4% on Monday.

Later today, traders will be watching out for reports on crude and product stockpiles from the American Petroleum Institute on Tuesday and the US Energy Information Administration on Wednesday.

Meanwhile, Libyan woes are easing and Iran is inching towards a negotiated agreement and OPEC+ sticking to their cautious unwinding.

However, analysts at TD Securities said ”the powerful recovery in key markets is outweighing supply-side concerns. ”

”n this context, crude prices can overshoot to the upside in the near-term, but a still massive amount of OPEC+ spare capacity makes a sustainable move above $70/bbl unlikely.”

Elsewhere, stocks have been trading defensively amid declines in technology stocks and comments from US Treasury Secretary Janet Yellen that the Fed may need to raise interest rates somewhat to prevent the economy from overheating. 

There will be a focus on this week’s Nonfarm Payrolls for further clues on how the US economic recovery is holding up.