Oil prices today climbed above $64 per barrel, a year ago the US oil futures were dragged below. Now the rally has been spurred owing to positive outlook for demand going ahead for the commodity.
WTI also climbed 1.3 percent and added to Monday's gains owing to dollar weakness.
There has been seen forward curve for oil which is reflective of strong and growing optimism as the US demand picks up pace. Nonetheless cautiousness still prevails, as India experiences an even worse second Covid 19 wave and refiners here are curb processing.
"Follow-through buying is pushing prices further up this morning but the immediate upside potential could be limited by the relentless march higher in infection rates," said Tamas Varga, an analyst at PVM Oil Associates.
In the year 2021, crude is up over 30 percent suggesting that reopening of economies will fuel consumption and keep reducing the inventory. So, as there is a decline in inventory, OPEC+ is mulling to restore supply next month.