Oil rises ahead of US inventories data

Oil prices continued to rise as the US market opened on Tuesday, to head for the first gain in 3 days, taking a breather thanks to expectation for the US crude inventories to drop for the second straight week, but remain under pressure from fears over the global demand due to rising coronavirus cases and second infections wave in Europe and the US.

US crude rose 1.2% to $40.23a barrel, after opening at $39.77, and hit a session-low of $39.39, and Brent rose 1.1% to $42.18, after opening at $41.76, and hit a session-low of $41.28. 

The US crude lost 2.75% yesterday, and Brent crude futures fell by 3.25%, posting their second straight daily loss, pulling back from a 2-week high on profit-taking and demand concerns.

The American Petroleum Institute will release later today its preliminary data on US crude inventories, amid forecasts of the second straight weekly drop, and the Energy Information Administration will reveal its official report tomorrow.

The coronavirus crisis continues to deter the global market, as cases spiked in France, the UK, Spain and many parts of the US, which renewed concerns about the global fuel demand.

This led some countries, such as the UK to consider re-imposing another lockdown in efforts to contain the spread of the coronavirus, and in the US health authorities warned from a second wave.