Oil Closes Higher after Senate Passes Infrastructure Bill

Oil prices closed higher on Tuesday for the first time in three sessions, amid improved expectations for demand recovery after the U.S. Senate passed a huge infrastructure package.

Brent crude oil futures for October delivery gained $1.59, or 2.30%, to close at $70.63 per barrel.

The West Texas Intermediate futures for September delivery added $1.81 per barrel, or 2.72%, and finished at $68.29 a barrel.

This marked the largest gain for both the global and U.S. oil futures since July 21.

Today’s gains came as oil contracts managed to erase earlier losses that came amid strong selling pressures due to concerns over the spread of the coronavirus Delta variant.

Data by the American Petroleum Institute (API) just showed that crude oil inventories in the United States are estimated to have fallen by 816,000 barrels last week. Gasoline inventories decreased by 1.14 million barrels, while distillate stocks added 673,000 barrels.

Official inventory data by the EIA is due tomorrow.