The U.S. Department of Energy said Monday it would purchase 3 million barrels of crude oil for the Strategic Petroleum Reserve for delivery in August, and called for bids by May 31.
“The market was boosted by expectations that the U.S. strategic reserve oil buyback would continue if WTI prices fell near or below $70 a barrel,” said Fujitomi Securities analyst Toshitaka Tazawa.
“One of the reasons for the gains is also that some investors are looking for offers after the recent sharp declines,” he added.
Brent crude futures rose 42 cents, or 0.56%, to $75.65 a barrel at 0250 GMT, while U.S. West Texas Intermediate crude was $71.49 a barrel, up 37 cents, or 0.52%, according to Reuters data.
Both benchmarks rose more than 1% on Monday, ending a three-game losing streak.
Last week, Brent and WTI futures fell for the fourth week in a row on US recession fears and the risk of a government debt default in early June for the first time in its history. The last time futures posted a similar series of weekly declines was in September 2022.
However, on Tuesday, oil prices were supported by supply issues caused by wildfires in Canada.
Widespread fires in Alberta, Canada, have forced more than 30,000 people from their homes and halted production of at least 319,000 barrels of oil equivalent per day, or 3.7% of national production.
Global crude supplies could also contract in the second half of the year, if the OPEC+ grouping, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, decides to make further production cuts.
On the other hand, data from the Energy Information Administration showed that US oil production from the seven largest shale oil basins is expected to rise in June to a record high.
In Venezuela, an internal planning document showed that the new management of the state energy company (Petroleos de Venezuela) plans to increase the country’s oil production to 1.17 million barrels per day by the end of the year. year with an increase in refining and exploration activities. .
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