# Oil rebounds on profit-taking as market shrugs off virus impact Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-10 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: Oil prices rise 3% on profit-taking and demand uptick in Meta Description: Discover the latest news on oil prices, driven by profit taking and increasing demand in Europe and the United States. Stay informed with Reuters. URL: https://financedigest.com/oil-rebounds-on-profit-taking-as-market-shrugs-off-virus-impacthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-08-10t014006z1lynxmpeh7901hrtroptp3global-oil-1736838033087-compressed.jpg) By Devika Krishna Kumar NEW YORK (Reuters) -Oil prices rose 3% on Tuesday, largely driven by profit taking after more than a week’s losses and supported by rising demand in Europe and the United States. Brent crude was up $1.87, or 2.7%, at $70.91 a barrel by 10:39 a.m. ET (1440 GMT,) and U.S. oil rose $2.12, or 3.2%, to $68.60 a barrel. Both contracts dropped around 2.5% on Monday and fell by the most in months last week on [concerns over rising](https://www.financedigest.com/shares-slip-yields-rise-as-u-s-data-sparks-rate-hike-concerns.html "Shares slip, yields rise as U.S. data sparks rate hike concerns") COVID-19 cases. Analysts said the [demand outlook](https://www.financedigest.com/oil-prices-rebound-after-opec-upgrades-china-demand-outlook.html "Oil prices rebound after OPEC upgrades China demand outlook") was still choppy. While profit taking out of short holdings could prove to be today’s main feature, we [expect the bulk of today’s trade](https://www.financedigest.com/ab-foods-says-primark-trading-ahead-of-expectations.html "AB Foods says Primark trading ahead of expectations") to contain within about the upper half of yesterday’s wide $2.5 range,” said Jim Ritterbusch, president of Ritterbusch and Associates LLC in Galena, Illinois. We believe that some improvement on the coronavirus front will need to be seen to prompt a sustainable upside reversal in [oil pricing.”](https://www.financedigest.com/oil-prices-stable-heading-for-weekly-gain.html "Oil prices stable, heading for weekly gain") The rapid spread of the Delta variant of the [coronavirus pushed cases and hospitalizations](https://www.financedigest.com/u-s-coronavirus-cases-hit-new-high-hospitalizations-creep-up.html "U.S. coronavirus cases hit new high, hospitalizations creep up") in the United States to a six-month high. Still, U.S. crude, gasoline, and other product inventories are likely to have dropped last week, with gasoline [stocks forecast](https://www.financedigest.com/stocks-buoyant-while-darker-forecasts-gather-on-the-horizon.html "Stocks buoyant while darker forecasts gather on the horizon") to fall for a fourth consecutive week, a preliminary Reuters poll showed on Monday. \[EIA/S\] [Crude oil](https://www.financedigest.com/oil-falls-as-earthquake-impact-on-crude-eases-rate-hike-fears-rise.html "Oil falls as earthquake impact on crude eases, rate hike fears rise") inventories are expected to have fallen by about 1.1 barrels in the week to Aug. 6, according to the average estimate of six analysts [polled by Reuters](https://www.financedigest.com/bank-of-england-to-raise-rates-by-50bps-again-to-tame-inflation-reuters-poll.html "Bank of England to raise rates by 50bps again to tame inflation: Reuters Poll"). The U.S. Senate on Tuesday is set to hand President Joe Biden a $1 trillion victory when it passes the largest infrastructure bill in decades which, if enacted, would boost the economy and [demand for oil](https://www.financedigest.com/oil-falls-on-demand-worry-as-fed-make-or-break-moment-approaches.html "Oil falls on demand worry as Fed ‘make or break moment’ approaches") products, analysts said. Successful vaccination programmes in the West and encouraging [economic data](https://www.financedigest.com/oil-slumps-on-economic-data-stronger-u-s-dollar.html "Oil slumps on economic data, stronger U.S. dollar") come in sharp contrast to rising infections in the East. In Australia, police are on the streets to enforce COVID-related restrictions, while some cities in China, the world’s top crude [oil importer](https://www.financedigest.com/indias-reliance-makes-rare-buy-of-russian-naphtha-ups-fuel-oil-imports.html "India’s Reliance makes rare buy of Russian naphtha, ups fuel oil imports"), have stepped up mass testing as authorities try to stamp out a new surge of the virus. The lockdowns (in China) could instigate a momentary pause in price action, but as [COVID-19 cases are expected to abate quickly given the relatively](https://www.financedigest.com/covid-19-insurance-related-litigation-deluge.html "Covid-19 – Insurance Related Litigation Deluge") low number of infections, the downside may be fleeting,” said StoneX analyst Kevin Solomon. Economic [data this week](https://www.financedigest.com/wall-st-seen-steady-ahead-of-inflation-data-fed-later-in-week.html "Wall St seen steady ahead of inflation data, Fed later in week"), especially the U.S. Consumer Price Index on Wednesday, will provide guidance on how hard the virus will hit [global and regional oil](https://www.financedigest.com/global-stocks-close-in-on-4-week-highs-oil-rises-on-hopes-of-soft-landing.html "Global stocks close in on 4-week highs, oil rises on hopes of ‘soft landing’") consumption, analysts said. (Reporting by Devika Krishna Kumar in New [York Additional reporting by Bozorgmehr Sharafedin in London](https://www.financedigest.com/crh-shareholders-back-primary-listing-switch-to-new-york-from-london.html "CRH shareholders back primary listing switch to New York from London"), Aaron Sheldrick in TokyoEditing by Marguerita Choy and David Holmes) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---