Oil prices gained on Tuesday as higher seasonal demand in developed economies offset the impact of a large global supply overhang.
Expectations of a fall-off in U.S. shale oil production and a weaker dollar also underpinned prices.
Brent for July delivery LCOc1 was up 95 cents to $63.64 a barrel as of 08:46 GMT (04:46 EDT), having settled down 62 cents in the previous session.
Front-month U.S. crude CLc1 climbed 73 cents to $58.87 a barrel, after ending the previous session down 99 cents.
Demand for oil tends to increase in the summer months as drivers take to the roads for holidays in Europe and the United States. This has helped counter the impact of a growing glut in supply that has led to tankers storing oil at sea.
“There is currently seasonal demand for oil, so there is less of a build in crude oil stocks,” said Olivier Jakob at Petromatrix in Zug, Switzerland. “But there is still too much oil for the rally to take hold.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.