Oil prices rose on Tuesday, supported by a softer dollar and a U.S. plan to restock petroleum reserves, but gains were capped by uncertainty over the impact of rising COVID-19 cases in top oil importer China.
Brent crude futures were up 34 cents, or 0.43%, at $80.14 a barrel by 1434 GMT, adding to a 76 cent gain in the previous session.
U.S. West Texas Intermediate (WTI) crude futures for February delivery rose 48 cents, or 0.64%, to $75.86.
Oil prices have been buoyed by U.S. plans to buy up to 3 million barrels of oil for the Strategic Petroleum Reserve after this year’s record release of 180 million barrels.
A weaker dollar has also supported prices, making oil cheaper for those holding other currencies.
“Oil prices could see further upside, as we expect physical markets to tighten further on the back of supply constraints and stronger global demand,” Qatari bank QNB said in a note, predicting prices at $90-$115 a barrel in the coming quarters.