U.S. crude oil held above $80 per barrel on Tuesday, after starting the week with strong gains.
In a note to clients, Bob Yawger, executive director of energy futures at Mizuho Securities, cautioned that the rally in energy prices may largely be speculators covering short positions.
Yesterday was the exception that proved the rule," Tamas Varga, an analyst with oil broker PVM, wrote in a note Tuesday.
Oil prices had recently declined partly because of a decision by OPEC+ members to start rolling barrels back onto the market in the fourth quarter.
Now oil is rising as analysts see the market tightening in the third quarter on expectations that summer fuel demand will draw down inventories.
Persons:
Bob Yawger, Tamas Varga, PVM, Ryan McKay
Organizations:
West Texas, Oil, Mizuho Securities, TD Securities
Locations:
China, OPEC