Oil Prices Stabilize Amid Tight Supply And High COVID-19 Cases

Oil prices stabilized on Tuesday, July 27, as investors bet that tight supply and growing vaccination rates would ease demand from the rise in Covid-19 cases around the world.

Brent crude futures were up one cent at $74.51 a barrel.

And US intermediate crude contracts fell eight cents, or 0.1%, to $71.83 a barrel.

Both benchmarks were held even after the United States issued travel warnings to Spain and Portugal due to the growing number of Covid-19 infections.

A White House official told Reuters that broader travel restrictions would not be lifted due to the fast-spreading delta strain and an increase in local infections.

In a positive indicator of fuel demand, Britain recorded the lowest total of new daily infections with the Coronavirus since the fourth of July yesterday, Monday, indicating that the recent growth in infections has exceeded its peak.