Oil prices extend gains on US plans to refill reserve, Canada’s wildfires
Brent crude futures rose 31 cents, or 0.4%, to $75.54 a barrel by 0043 GMT, while U.S. West Texas Intermediate crude was at $71.38 a barrel, up 27 cents, or 0.4%.
Both benchmarks rose more than 1% on Monday, reversing a 3-session losing streak.
The U.S. Department of Energy said on Monday it would buy 3 million barrels of crude oil for the SPR for delivery in August, and asked that offers be submitted by May 31.
“The market got a boost from expectations that the U.S. repurchase of oil for the strategic reserve will continue if WTI prices fall near or below $70 a barrel,” said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd.
“Behind the gain was also bargain-hunting by some investors after the recent sharp declines,” he said.
Last week, Brent and WTI futures fell for a fourth straight week over fears of a U.S. recession and risks of a historic default on government debt in early June. The benchmarks last recorded a similar streak of weekly declines in September 2022.
Oil prices on Tuesday, however, drew support from supply worries stemming from wildfires in Canada.
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