Crude oil futures settled notably higher on Tuesday, even as traders continued to remain concerned about the outlook for energy demand and possible oversupply in the market. Surging coronavirus cases and reports about some countries resorting to fresh lockdown measures, and the decision of the Organization of the Petroleum Exporting Countries and its allies to increase output from August had pushed down oil prices sharply on Monday. The demand outlook is weak due to the rapidly spreading delta variant of the coronavirus and fresh restrictions on movements in several countries across the world. Traders now look ahead to weekly oil reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA).
Crude oil futures for September rose $0.85 or about 1.3 percent to settle at $67.20 barrel on the New York Mercantile Exchange. September Brent crude gained $0.94 or 1.37 percent to settle at $69.55 a barrel on London's Intercontinental Exchange.