By Sonali Paul
MELBOURNE, May 4 (Reuters) - Oil prices added to overnight
gains on Tuesday, buoyed as more U.S. states eased lockdowns and
the European Union sought to attract more travellers, which
would help offset weakened fuel demand in India as COVID-19
cases soar.
Brent crude LCOc1 futures rose 14 cents, or 0.2%, to
$67.70 a barrel at 0150 GMT, after climbing 1.2% on Monday.
U.S. West Texas Intermediate (WTI) crude CLc1 futures also
rose 14 cents, or 0.2%, to $64.63 a barrel, after gaining 1.4%
on Monday.
Prices are being supported by the prospect of a pick-up in
fuel demand in the United States and Europe, as New York state,
New Jersey and Connecticut were set to ease pandemic curbs and
the European Union planned to open up to more foreign visitors
who have been vaccinated, analysts said.
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"This should boost holiday travel to coastal regions, as
well as increase mobility in major cities," ANZ Research
analysts said in a note.
For further signs of rising U.S. oil demand, traders will be
watching out for reports on crude and product stockpiles from
the American Petroleum Institute on Tuesday and the U.S. Energy
Information Administration on Wednesday.
Five analysts polled by Reuters estimated on average that
U.S. crude inventories USOILC=ECI fell 2.2 million barrels in
the week to April 30. Oil inventories rose in the previous two
weeks. The rate of refinery utilization USOIRU=ECI was expected
to have increased by 0.5 percentage points last week, from 85.4%
of total capacity in the week ended April 23, according to the
poll.
A weaker dollar, hit by an unexpected slowdown in U.S.
manufacturing growth, also helped shore up oil prices on
Tuesday. The lower dollar makes oil more attractive to buyers
holding other currencies.