Oil prices inch up, but China Covid surge limits gains

Oil prices edged up on Tuesday, supported by a softer dollar and a United States plan to restock petroleum reserves, but gains were capped by uncertainty over the impact of rising Covid-19 cases in top oil importer China. Brent crude futures were up 24 cents, or 0.3 per cent, at $80.04 a barrel at 0402 GMT, adding to a 76-cent gain in the previous session. US West Texas Intermediate (WTI) crude futures rose 49 cents, or 0.7pc, to $75.68 a barrel, after climbing 90 cents in the previous session. Oil prices have been buoyed by a US plan announced last week to buy up to three million barrels of oil for the Strategic Petroleum Reserve following this year’s record release of 180m barrels from the stock. A weaker greenback has also supported prices, making oil cheaper for those holding other currencies. However, analysts said clear signs of growing demand were needed for prices to climb further.