Oil prices held the biggest jump since March ahead of an upcoming OPEC market report.
Brent Crude (BZ=F) traded below $82 a barrel after surging 2.5% on Monday, while West Texas Intermediate was near $78.
It comes as the OPEC report will be followed by a Short-Term Energy Outlook from the US later on Tuesday, and a monthly release from the International Energy Agency (IEA) on Wednesday.
Crude rallied on Monday as traders bought the dip after the biggest weekly loss since early May. The selloff prompted the OPEC and its allies to clarify that it could pause or reverse production changes if needed.
Oil has moved generally lower since early April on concerns about demand and swelling supply from outside of OPEC. Output from Russia last month stayed above a level the country had pledged to OPEC+, even as it made the deepest cuts in over a year.
Traders are “looking beyond the higher-for-longer rate narrative from the Fed,” said Yeap Jun Rong, market strategist with IG Asia Pte. “Market participants are hoping to tap on some optimism around upcoming summer demand.”
