Oil prices edge higher as supply cut hopes outweigh coronavirus resurgence fears

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Oil prices edge higher as supply cut hopes outweigh coronavirus resurgence fears
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Oil prices made marginal gains on Tuesday, reversing out of earlier losses, as hopes for further cuts in crude supplies took the sting out of concerns that a resurgence of new coronavirus infections around the world could hamper fuel demand.

FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, U.S., November 22, 2019. Picture taken November 22, 2019. REUTERS/Angus Mordant

“While the run of COVID-19 headlines emphasise that a demand recovery is likely to be a slow process, it seems unlikely that we see a return to the lockdown measures of 1H,” said Stephen Innes, Chief Global Markets Strategist at AxiCorp, in a note. “Renewed optimism that OPEC+ production cuts could remain in place if we see second-wave concerns intensify have oil prices refusing to enter freefall,” said Edward Moya, senior market analyst at OANDA.

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